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The Nasdaq 100 index has opened the day slightly lower on the back of opening losses in the shares of Micron Technology Inc as well as Netflix and Amazon. Micron Technology Inc shares are down 9.8% after it announced lower profit forecasts. The company is blaming the US-China trade war on its downbeat results.
Nasdaq 100 futures were down 60 points at a point in today’s trading session, but are starting to retrieve some of these losses.
The Nasdaq 100 had an underwhelming performance in Thursday’s trading session, as shares of Peleton fell 11% on its listing, dropping its market valuation to $7.2billion. The fall in Peleton stock was the third time this year that such a highly valued stock would fall below its IPO value on listing day.
In the meantime, news just out of the Nasdaq exchange indicate that the Boeing CEO is to testify in front of US Congress next month about the grounded 737 MAX fleet. The fleet was grounded after two high profile crashes which led to hundreds of deaths.
As at the time of writing, the Nasdaq 100 was trading at 7761.
Technical Outlook for Nasdaq 100
The slide in the shares of US chipmaker Micron Technology Inc dragged down the Nasdaq 100, but it is starting to pull back upwards in tandem with the Dow, which is up after a strong opening to the trading session.
The daily chart features a resolution of the rising wedge pattern in progress. The downside break was triggered by yesterday’s downbeat performance, but it looks as though complete resolution is still far off as prices recover intraday.
The measured move of the rising wedge is expected to bring the price of Nasdaq 100 to the immediate support at 7581 (March 2 low). Below this level, 7541 (August 27 intraday lows) and 7386.5 (August 6 low) could become relevant if price were to violate the 7581 support to the downside.
On the flip side, a recovery could see Nasdaq 100 aiming for recent highs at (September 18 and 24 highs) and above this level, 7951 (Sep 11 high) remains the next available resistance. A break above 7951 invalidates the bearish view.