The Nasdaq 100 index kicked off the new weekend very well, and it was trading 2% higher during the early US session on Monday.

It looks like investors have forgotten the worsening COVID situation worldwide, and they just bought tech (and other) stocks again. The index has been rising nonstop since the Sunday open. 

The initial resistance now seems to be near previous highs of 11,550 USD, which might be tested today, considering the strong bullish momentum. If this level is broken to the upside, the previous correction should be over, at least according to the technical analysis. 

In that case, the Nasdaq 100 index would be expected to rise toward 12,000 USD rather quickly, with the possibility of new all-time highs soon after that.

Moreover, it looks like a double bottom pattern on the daily chart, which is a bullish reversal formation. The support of this formation is near 10,680 USD, and the neckline is at 11,230 USD, making the full potential of this formation circa 550 USD from the neckline. 

Thus, bulls will be targeting the 11,900 USD level if this formation holds. The intraday support is now at the broken neckline of 11,230 USD, and while the index trades above it, the short-term outlook seems bullish. 

Source: https://www.axiory.com/technical-analysis/nasdaq-soars-correction-seems-over

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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