The Nasdaq 100 has resumed from where it left off on Monday and is pushing higher by 1.83% after shaking off Tuesday’s blip. Detailed questions on the efficacy and possible manipulation of data about the coronavirus vaccine candidate from Moderna, which had helped lift the Nasdaq 100 on Monday, caused a mild selloff on the index asset yesterday. However, the markets seem to have shaken off the Moderna drawback and are inching closer to recapturing 2020’s all-time highs.
One of the stocks leading the charge on the Nasdaq 100 is chipmaker Nvidia, which will report its quarterly earnings in the after-hours session. It has notched up more than 6% this week. Facebook also sees demand on the Nasdaq 100, surging 6.08% after an analyst at Deutsche Bank tripled the initial revenue opportunity estimates from the new Facebook Shops product to $30 billion.
It took five weeks to wipe out seven years of gains on the Nasdaq 100, but it has also taken two months to reclaim 95% of those losses. So what lies next for the index?
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Technical Outlook for Nasdaq 100
The Nasdaq 100 is forcing intraday highs that that are currently challenging the 9452.0 resistance level, even as the price action makes its way to the upper border of the ascending channel on the daily chart.
A break of the 9452.0 price resistance allows the Nasdaq 100 to make a push for 9626.4. This move may require a violation of the channel to the upside. Beyond this point, the previous all-time highs of February 2020 could be within touching distance.
On the flip side, rejection at 9452.0 at the channel’s upper border could see price action cool off a bit, allowing a return to test the 9264.4 support level. A breakdown of this support brings 9167.4, 9092.3 and 8945.7 into focus, as was the case recently. However, attainment of 8945.7 at this stage requires a breakdown of the channel’s lower border.
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