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.
Download our Q2 Market Global Market Outlook
Technical Outlook for Nasdaq 100
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.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.