Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Nasdaq 100 Technical Update: Bullish Trend Intact, Earnings On Tap

Published 15/07/2021, 06:53
Updated 09/07/2023, 11:31

With the US “big tech” earnings season just around the corner, traders will be keying in on the gargantuan FAAMG (Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Google/Alphabet) names that drive so much of the performance in the broader indices.

We’ll have individual breakdowns with the key themes and expectations for these companies in the coming weeks, but it’s worthwhile to start by analyzing the technical picture for the Nasdaq 100 (US Tech 100) index, which has nearly 40% of its holdings in the FAAMG stocks, before delving into the idiosyncrasies of the individual stocks.

Looking at the chart below, the Nasdaq 100 is undeniably in a strong uptrend, with price rising above the upward-trending 21-, 50-, and 100-day EMAs. Over the last two months, the index has surged 15% in a tight rising channel formation, so as long as that pattern remains intact, the path of least resistance for the index remains to the topside for a potential test of the $380 area (the 200% Fibonacci extension of the Q1 pullback, not shown):

QQQ - Daily Chart

On the other hand, if we see a disappointing earnings season (or just a general loss of bullish momentum) and the 2-month bullish channel breaks, the Nasdaq 100 is likely to pull back toward previous-resistance-turned-support and the rising 100-day EMA in the $340 area.

Technicals have been the driving force for the technology-heavy Nasdaq 100 over the last couple months – now it’s time to see whether fundamentals can pick up the baton and keep the bullish momentum going!

Original Post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.