CFD Report: Nasdaq set to hold range support?
Hi traders, today we’re looking at the NDX100 CFD index, which tracks the Nasdaq stock index. Are we going to see a new hold at range low support?
As we have seen tech stocks have been having a hard time lately. Despite some fightback last Friday after a disappointing NFP miss we didn’t see that momentum carry over on the NDX100, as it closed very close to session lows. That low, or area is currently sitting in a demand/support area that lines up with the range bottom and has formed a rough triple bottom. Double and Triple bottoms can be seen as bullish reversal patterns just as double and triple tops can be seen and as bearish reversal patterns.
The area of interest at the moment is around 15,520, as we can see on the daily chart this area has been holding for buyers since early December last year. Or thought pross is if buyers can continue to hold we could see a confirmation of the triple bottom and further reinforcement of the current range. That could suggest buyers may start a new leg higher.
If sellers break lower this could mean support and the range has failed and we could be in for new moves lower. Also, beware of a short rally higher that forms an LH and quickly moves back to the range bottom. That may suggest weak buyers and plenty of seller interest.