The Nasdaq 100 is trading higher on the day as the Dallas Fed’s survey revealed that the manufacturing activity in Texas is recovering. Data released today by the Federal Reserve Bank of Dallas showed a more robust pace of expansion of the economic activity in Texas’ manufacturing sector.
The General Business Activity Index of the Dallas Fed’s Manufacturing Outlook Survey rose from 8.0 in August to 13.6 in September. Production Index climbed from 13.1 to 22.3 from 13.1, while the Employment Index grew from 10.6 to 14.5.
The report served to further boost the sentiment on the Nasdaq 100 for the day, which was already bullish from expectations of a stimulus deal and positive data from China.
Technical Outlook for Nasdaq 100
The technical outlook for the Nasdaq 100 this Monday comes from the 4-hour chart, where a double bottom pattern is evolving even as the long-term ascending channel remains. The troughs that form the depths lie on the same price level as previous lows of July 22, July 31, as well as a prior high seen on July 27. The price candles are currently testing the neckline, at the 11271.2 price level (August 6 high) where previous role-reversed lows on August 14, September 4 and September 14.
A breakout completes the pattern and puts the September 8/10 highs of 11567.6 as the potential target. This price level fulfils the price projection from the breakout point, which corresponds to the depth of the troughs that make up the potential double bottoms. 11794.1 forms a short-term target beyond this point.
On the flip side, rejection at the neckline targets 11262.9 (September 18 high). Further declines send the price towards 10866.5, which negates the double bottom pattern.
Don’t miss a beat! Follow us on Telegram and Twitter.
Nasdaq 100 Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.