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Nasdaq 100 tests rising channel highs

Jack’s Chart of the Day – 7 October 2026

13 October 2026

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Jack McKay

In this article

 Jack’s Chart of the Day examines the Nasdaq 100’s expansion from consolidation into a rising channel. The analysis covers EMA support, overbought momentum and potential upside levels following a confirmed breakout.

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Nasdaq Cash (NDX100), four-hour chart, Eightcap, 3 August to 6 October 2026. Features the 20-period EMA, horizontal price levels, volume and RSI (14) with its 14-period SMA signal line. Chart of the Day edition: 7 October 2026.

Price pattern

The two-month structure traces a transition from a horizontal consolidation channel into a bullish ascending channel expansion. Throughout August and mid-September, price action remained bound within a multi-week sideways consolidation rectangle between $28,789.85 and $29,700.00. A breakout from this base on September 17 initiated an impulsive vertical expansion that crested near $30,700. Following a brief corrective retracement into late September that established a higher low at $30,186.72, buyers mounted an upward channel trajectory. The current 4-hour session shows price trading near the top rail of this ascending corridor at $31,283.62 (+0.34% / +106.12 points).

Technical levels

 The technical setup reflects strong bullish momentum, with price ($31,283.62) maintaining its position well above the rising 20 EMA at 30,907.16. Immediate dynamic support is provided by the 20 EMA, backed by key horizontal support floors at $30,212.63 and $30,186.72. The lower channel boundary and the multi-month breakout floor at $28,789.85 serve as structural support. RSI (14) stands at 70.07, crossing above its 14 SMA signal line (62.91) and entering overbought territory, which indicates strong buyer control while signaling potential near-term consolidation around upper channel resistance.

Fundamentals

US growth equities continue to draw institutional capital inflows as global central bank easing expectations and resilient economic data cushion risk sentiment. Ongoing capital expenditure in artificial intelligence infrastructure and technological hardware continues to support benchmark growth indices. While elevated bond yields and central bank policy adjustments present intermediate headwinds, corporate balance sheet strength and forward earnings expectations maintain buyer demand on shallow dips.

Bottom line

The tactical read remains constructive while price holds above the 20 EMA (30,907.16) and the $30,186.72 structural floor. A confirmed 4-hour close above the upper channel resistance near $31,335.87 opens the path toward fresh psychological expansion targets at $31,500 and $32,000. Conversely, a break below 30,907.16 would signal a deeper pull-back toward the primary support shelf at $30,212.63.

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Trade the momentum

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Jack McKay | Eightcap Risk Manager

Jack McKay is Eightcap's Simulated Trading Risk Manager.

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