Any inkling of a selloff on the Nasdaq 100 seems to have quickly dissipated as the US markets are putting up strong performances this Monday, with the Nasdaq 100 trading 1.8% higher. The upsurge in the value of the Nasdaq 100 is being set up by the news that Moderna Therapeutics, a Nasdaq-listed stock, had seen promising results in the first phase of clinical trials of a coronavirus vaccine candidate. The company reported that after two progressively higher doses of its mRNA-1273 potential vaccine, all human subjects showed neutralizing antibody levels at or above levels seen in the sera of recovered coronavirus patients.
This press release sparked off a rally in the stocks of Moderna. Moderna was up 34% at a point in premarket trading, but a gap-closing selloff has erased 12 points from the premarket high, and it now trades 21% higher. Other stocks which are gaining on the Nasdaq 100 include Tesla, semiconductor company Nvidia and Marriot International, which have all added 4.19%, 3.64% and 8.86% respectively.
After shedding some weight last week, today’s resurgence on the Nasdaq 100 has clawed back all the losses and is presently challenging the 9264.4 resistance level, where point D in the harmonic crab pattern lies. This is the 2nd attempt at a breakout of this level and confirmation will have to come in the form of two successive penetration closes above this price level on the daily chart.
A successful breakout takes the Nasdaq 100 towards the 9452.0 resistance, formed by previous lows of 21 February 2020 and the earlier highs of 5/6 February 2020. This move puts the Nasdaq 100 well on the way to reclaiming the 2020 highs.
On the flip side, a failed break of 9246.4 could lead to a price pullback towards 9167.4, with 9092.3 and 8945.7 remaining potential candidates for renewed support to the Nasdaq 100 if a decline extends below 9167.4. The ascending channel continues to remain relevant to the current price action of the Nasdaq 100.