The Nasdaq 100 continues to tilt between gains and losses on the day. The tech-heavy index started the day on a high, as it attempted to retake yesterday’s all-time highs. However, several news releases which are producing conflicting sentiment have hit the newswires, ensuring the Nasdaq 100 continues to seesaw on the last trading day of the week. Earlier today, Gilead Sciences announced that its coronavirus treatment candidate Remdesivir was capable of reducing coronavirus-related mortality by 62% when compared to standard management protocols, citing latest data from its clinical trials. Shares of the company rose 2% as a result.
However, this favourable sentiment did not extend to the rest of the market after the latest WHO warnings on the coronavirus, as the global case count tops 12 million. The WHO DG is warning that the virus was not under control and that the situation was “getting worse”. Wednesday saw 62,000 new cases confirmed in the US, a daily record. It also tops the global list with 3.224 million cases, which was nearly double the case count of 2nd placed Brazil.
With such conflicting sentiment push, the Nasdaq 100 has found it hard to establish a trend for the day.
Technical Outlook for Nasdaq 100
A look at the daily chart on the Nasdaq 100 shows that price action continues to dilly-dally around the upper channel border. Today’s daily candle high fell short of yesterday’s record. Failure to surpass this high could allow for a more significant pullback, which may target the 10307.3 price support. The formation of a hanging man candle could enhance this prospect but would need further confirmation via the creation of another bearish candle which takes the price below the lows of the week.
A breakdown of 10307.3 from a continued decline brings in 10156.5 into the picture. It has to take a failure of the channel to actualize a move towards 9867.1, with 9730.2 and 9626.4 coming in close as potential support lines.
On the flip side, the Nasdaq 100 could make new highs if subsequent daily candles take out the 10784.8 price level; the current all-time high. Such a breakout could then target the 261.8% Fibonacci extension from the March 10 to March 23 move at 10843.6.
Nasdaq 100 Daily Chart