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Nasdaq 100 continues to lose significant momentum but whilst price and 21-day exponential moving average support at 10900/825 holds, the immediate risk can stay higher, per Credit Suisse.

Key quotes

“Nasdaq continues to hold key high-level support from the back of its ‘triangle’ continuation pattern and more importantly its pivotal 21-day exponential average at 10900/825 and although the trend losing significant momentum with a glaring RSI divergence now in place, the upside should continue to be given the benefit of the doubt for now.” 

“Resistance is seen at 11159 initially, with a break above 11285 seeing resistance next at 11375/80 next, then the top of the weekly Bollinger Band and further projection resistance at 11620/60, which we look to cap at first.” 

“Below 10825 on a closing basis though would see support from the 21-day exponential average removed (which has acted as key support from April) to suggest a correction lower is finally underway with support next at 10532, then more importantly at 10314.”