Nasdaq 100 Index Recovers, But New Record Highs Are Still a Mile Away

Nasdaq 100

The Nasdaq 100 index has resumed the upside today after some positive news hit the biotech sector this Wednesday. Stocks of Pfizer and BioNTech jumped after the US government ordered 100 million doses of its experimental vaccine candidate for the coronavirus, for which Pfizer is expected to charge $19.50 per dose. 

The deal is said to be worth $1.95billion and will see the US being able to order an additional 500 million doses; more than enough to vaccinate every American with several million doses to spare. However, Pfizer and BioNTech are testing to see if a two-dose regimen would be the magic number, in which case all vaccines ordered by the US government could be used up domestically. 

Expectations of positive earnings from Tesla and Microsoft is also boosting sentiment on the market, as is the 20.7% rise in existing home sales from 3.91 million units last month to 4.72 million units. 

The Nasdaq 100 is 0.38% higher and trades at 10895.1 at the moment. 

Technical Outlook for Nasdaq 100

Despite yesterday’s bearish close below the 10866.5 support, the price has pushed back up above it on the positive sentiment for the day. This scenario may allow the Nasdaq 100 to make another break for recent record highs, registered at 11,069.6. A break above this high is also expected to break above the ascending channel, and allow the index to post new highs, with 11453.1 (300% Fibonacci extension from the 10 March to 23 March move) beckoning. 

On the flip side, a breakdown of 10866.5 allows the price to target the 10505.4 support line. However, only a break down of the channel would bring in 10307.3 as a new downside target, with 10155.6 and 9867.1 becoming relevant on a further price decline.

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Nasdaq 100 Daily Chart

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