We use cookies to offer a better browsing experience, analyze site traffic, personalize content, and serve targeted advertisements. By clicking accept, you consent to our privacy policy & use of cookies. (Privacy Policy)

Nasdaq100: Correction to Dynamic Support Expected

This week marked two important events for the U.S. stock market, one of them affecting the Nasdaq100 index. First, Coinbase, one of the largest cryptocurrency exchanges in the world, listed its shares publicly.

Investors valued it at one hundred billion dollars, a staggering amount by all means. But Coinbase closed its first trading day lower by 15%, triggering a move lower in all crypto-related assets.

Second, the earnings season started in the United States. This week, the major financial institutions reported or are due to report their earnings for the first quarter. The chances are that they will easily beat forecasts.

Out of the two, the one event that may create a systemic risk is the former one. If Coinbase’s slide continues for another day and into the weekend, the chances are that Nasdaq100 will correct too.

In fact, it corrected already, down over one percent yesterday, dragged by the rout in Coinbase.

Nasdaq100 Technical Analysis

The technical picture looks bullish, as long as the price action remains above the rising trendline. The Nasdaq100 index even put a new marginal high, so shorting it here is quite the contrarian trade.

Yet, bulls should be cautious. Brave bears may want to try a contrarian trade, eyeing a move to the rising trendline. At that point, the price meets dynamic support, and bulls may step in.

Don’t miss a beat! Follow us on Telegram and Twitter.

Nasdaq100 Price Forecast

More content