The Nasdaq 100 index is back into positive territory for the 2nd day this week, as the US markets stage a remarkable rebound from last week’s coronavirus-induced selloff. The rebound in the Nasdaq 100 index is being driven by the humongous spike in the price of Tesla stocks, whose 20% premarket jump has taken it above the $900 price level in what experts are calling a surprise move.
Furthermore, there are indications that the coronavirus outbreak is witnessing slower spread outside of China than initially feared. The US ISM Manufacturing PMI data which came in better-than-expected yesterday is also helping to boost prices.
So far, most of the fatalities and new cases from the coronavirus infection have occurred in China, and the WHO’s announcement which stated that the outbreak had not reached pandemic levels was enough to please investors.
The Nasdaq 100 index is currently 1.5% higher at 9,261.3 and is expected to test resistance at 9264.4.
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Technical Outlook for Nasdaq 100
The 2-day move that has opened the week for the Nasdaq 100 index has made a strong bullish impression which is now challenging the 161.8% Fibonacci extension level and site of the previous weekly high of 20 January. At current levels, the upper ray of the pitchfork has been broken to the upside, and any break of the current horizontal resistance marked by the 20 Jan high/161.8% Fibonacci extension line could push the Nasdaq 100 to all-time highs.
On the flip side, a rejection at the 161.8% Fibonacci extension sends the Nasdaq 100 lower to retest support targets at 9167 and 9092, in that order. This rejection could follow renewed coronavirus fears or it could follow profit-taking on the index’s major stocks such as Tesla or Google.
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