Nasdaq 100 has had another strong start to the week as the market gaps higher yet again, reinforcing the break of long-term trend resistance from 2011 for a test of next flagged resistance at 10560/620. Whilst analysts at Credit Suisse look for this level to cap at first, a direct break can send the tech index towards the top of the weekly Bollinger Band at 10795/800.
Key quotes
“Near-term, strength has extended to our next flagged resistance at 10610/25. Whilst a pullback from here should be allowed for, a direct break can see resistance next at the top of the weekly Bollinger band, now at 10795/800. Above here can see the psychological 11000 barrier, with further Fibonacci projection resistance then seen at 11060/65, which we look to prove a tougher initial barrier.”
“Support from the price gap from yesterday needs to hold to keep the immediate risk higher, seen starting at 10486 and stretching down to 10342/29. Below can see a correction lower emerge, with support next at 10143/10.”
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