Markets have been grappling to establish a definitive bottom in recent sessions, before finally the bulls showed up on Friday to stage a strong rebound from oversold levels. Could the Nasdaq 100 now be poised for a more substantial recovery?
After Friday’s recovery, the big question now is whether we are witnessing the early stages of another rally or just a pause before deeper losses.
Last week, the Nasdaq 100 found some footing in the 19,115-19,240 zone, which coincides with a prior support/resistance region and the 61.8% Fibonacci retracement of the August rally. With the daily RSI firmly entrenched in oversold territory, the index was able to find dip buyers yet again.
The key technical factor to watch today is to see whether the index will show follow-through after Friday’s sharp recovery. A positive close would further erode the bears’ control, while a negative close would suggest there is more selling to come.
A few nearby resistance barriers are in focus now. The first of these hurdles is at 19,735—the low from Friday that was breached in Monday’s sharp sell-off. This level also marks the underside of a broken trendline stretching back to January 2023. A decisive break above this area could open the door to additional upside, targeting psychological resistance at 20,000, followed by the 200-day moving average near 20,340. Should dip buyers regain control, these levels could soon come into focus.
On the flip side, if renewed selling pressure emerges, downside targets include 18,800 and potentially the 78.6% Fibonacci retracement near 18,310.
Taking everything into account, my Nasdaq 100 forecast has shifted. Where I previously leaned towards further correction—now largely realised—I am now inclined to anticipate a recovery.
By Fawad Razaqzada, market analyst with FOREX.com
After Friday’s recovery, the big question now is whether we are witnessing the early stages of another rally or just a pause before deeper losses.
Last week, the Nasdaq 100 found some footing in the 19,115-19,240 zone, which coincides with a prior support/resistance region and the 61.8% Fibonacci retracement of the August rally. With the daily RSI firmly entrenched in oversold territory, the index was able to find dip buyers yet again.
The key technical factor to watch today is to see whether the index will show follow-through after Friday’s sharp recovery. A positive close would further erode the bears’ control, while a negative close would suggest there is more selling to come.
A few nearby resistance barriers are in focus now. The first of these hurdles is at 19,735—the low from Friday that was breached in Monday’s sharp sell-off. This level also marks the underside of a broken trendline stretching back to January 2023. A decisive break above this area could open the door to additional upside, targeting psychological resistance at 20,000, followed by the 200-day moving average near 20,340. Should dip buyers regain control, these levels could soon come into focus.
On the flip side, if renewed selling pressure emerges, downside targets include 18,800 and potentially the 78.6% Fibonacci retracement near 18,310.
Taking everything into account, my Nasdaq 100 forecast has shifted. Where I previously leaned towards further correction—now largely realised—I am now inclined to anticipate a recovery.
By Fawad Razaqzada, market analyst with FOREX.com
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.