Market Update: Resistance set to stop the NDX100 run?

December 9, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today focus is on the NDX100 as price starts to stall after reaching a previous resistance point. Could we see an end to the three day run?

Looking at the daily chart below, we can see price continues to trade in a long-term uptrend and has now started a new short term uptrend after shaking off recent selling we saw eventuate after the Omnicron variant appeared. The new variant rekindled fears due to the number of mutations it carries, possibly rendering current vaccines less effective. So far, these fears could be overblown but data is still being analysed. Today the UK announced the new variant is spreading rapidly throughout the country.

After the storm, we saw the NDX100 add over 4% in three sessions. This rally launched from a demand/support validating this area. The rally also broke through the fast downtrend but has now stalled around 16,420. This level stood as resistance after the last record and stopped a few attempts by buyers before the selling got underway. So far today we’re seeing further weakness after resistance once again stood firm.

Could this level combined with the fast run-up set up a new reaction to test the current leg up? It wouldn’t be too surprising to see some selling come into play after the three-day run we have seen. If we do see a new move lower we want to see demand/support hold or preferably not be tested so we see a new higher low set up. Otherwise, if buyers can turn today’s action around and close above resistance we will continue to see if buyer momentum bac carry forward and look towards previous highs as a potential target.

NDX100 D1 Chart

All times are AEDT.