Nasdaq 100 Ascending Triangle Points to Possible Move to 16,000

The Nasdaq 100 index forms a possible continuation pattern on the daily timeframe. It keeps pressuring horizontal resistance formed at 14,000 and a break and close above the level suggests a runup to 16,000.

A close look at the chart below reveals the fact that the triangle started in 2021 and the consolidation continued in the first six months of the year. Now that the Fed is preparing to talk about tapering, it is strange that the stock market looks bullish.

But the key here is how the tapering will take place. Most likely, the Fed will first signal the start of the discussions. Next, it will announce the decision to taper. Finally, it will actually start reducing asset purchases. Therefore, the Fed is actively involved in a campaign to let the markets know in advance of its moves so as to avoid a possible tantrum.

Because of that, we may see markets rallying in the event of stimulus removal, contrary to all expectations.

Nasdaq 100 Technical Analysis

Bulls may want to wait for the market to close above 14,000 on the daily timeframe before going long, with 16,000 as target and 13,000 as a stop loss. This way, the risk-reward ratio makes sense, considering the long consolidation period for the ascending triangle.

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Nasdaq 100 Price Prediction

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