The equity markets rebounded today, but there’s no doubt that from the technical perspective, we are still in the bear market. However, this can change soon as Nasdaq 100 moves up to 2.87% on Monday, October 17th. While volatility is extreme, we can try to deduct the strong trends.
After a bleak Friday, Nasdaq 100 has stormed back over 11,000 early this week. Some important companies will publish their results this week, and it wouldn’t be a bad idea to take a closer look at the technical formation on the 4-hour chart. With the earning season just starting, NDX100 should be the asset to trade until October.
Nasdaq 100 Moves Up: Equities Strike Back
Nasdaq 100 moves up to 2.87% on Monday, along with other major indexes. The European equity market has had a good start to the week, with CAC40 going up 2.8% and DAX40 2.75%.
This bullish rebound after a red Friday, when Nasdaq fell 3.19%. Some traders saw an opportunity to buy low with amazing bargains, such as Tesla, for $204 per share (the lowest since June 2021).
Nasdaq 100 Moves Up: Trading Fib Retracement
Let’s take a look at the Nasdaq 100 four-hour chart below. We can see that the candle bars still mostly fit the long-term downtrend channel. However, the recent run is very important from the technical analysis perspective, as the 11,000 resistance can break the pattern. If this happens, the next stop would be around 11,199, which is 0.236 Fibonacci retracement level. If Nasdaq 100 moves up to 11,679 and manages to break through, the trend reversal would be even more likely. But for traders who entered long, this would also be a good opportunity to cash out.
There Is Still a Room For NDX100 To Grow
Still, the macroeconomic environment will heavily influence the technical signals – the inflation data from major economies and Fed’s interest rate decision. Additionally, Tesla and Netflix will report their financial result, which could swing Nasdaq.
The moving averages and Stochastic RSI suggest there’s still some room for NDX100 to grow. We will see plenty of opportunities on the Nasdaq 100 this week. Trade accordingly to your strategy and intuition.