The Nasdaq 100 continues to surge to new highs after a second straight day of strong performance in Chinese stocks. Investors on the tech-heavy Nasdaq 100 continue to defy the deluge of coronavirus news reports from across the US and continue to drive growth in the index, which is now approaching the 10,700 mark.
Today’s gain is driven by stocks such as Tesla, which is on its way to a 5th straight record-breaking day after crossing the 1406 mark.
However, the star performers of the day on the Nasdaq 100 are the stocks of the pharmaceutical companies. Corvus Pharmaceuticals spiked 106.9% after it initiated a Phase 1 study to investigate the use of CPI-006, a monoclonal antibody, as a new immunotherapeutic approach to treat the coronavirus disease. Hepion Pharmaceuticals, Endologix Inc, Fuel Tech Inc and Novavax are all posting substantial double-digit gains that exceed 30%.
Technical Outlook for Nasdaq 100
The Nasdaq 100 index is now trading at 10666.3, or 0.52% higher. It is currently threatening to break out of the ascending channel on the daily chart. At this price level, it has taken out the 241.4% Fibonacci extension from the 10 March to 23 March wave. The next target would be the 261.8% price level at 10843.6 if the channel break is confirmed.
Conversely, failure to break the channel’s upper border allows the asset to pullback towards 10307.3, with 10156.5 coming in as the next resistance. A breakdown of the channel is required for 9867.1 and 9730.2 to come into the picture as potential support levels. Further support occurs at 9626.4 and 9452.0.
Nasdaq 100 Index: Daily Chart