NASDAQ 100 : DANGER !!!
- The market has been trading in a bullish channel since the Q4 2023, the long-term trend is therefore bullish.
The technology stock index benefits from a growing appetite on the part of investors, particularly encouraged by the growth prospects for these assets thanks to the digitalization of economies, the craze for cryptographic markets as well as the boom related to AI.
- Thanks to technical analysis, we can easily realize that the trend is gradually losing its strength.
Indeed, new highs are getting lower and lower and the RSI indicator gives us two alarming messages:
1) the bearish divergence between the market and the RSI confirms the trend slowdown.
2) The breakout of the trend line by the RSI indicator tells us about the growing possibility of a bullish trend invalidation from the market. the market.
- Even if the trend remains bullish on this index so far, investors could prefer to remain cautious with regard to the different signals sent by technical analysis.
Indeed, the prospect of a future correction increases every day and could take the index towards 17,180.0pts, 16,600.0pts or even 16,135.0pts by extension.
For the moment euphoria reigns on the market, especially since the latest results published by NVIDIA, but the bubble could well burst soon.
To be continued...
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The technology stock index benefits from a growing appetite on the part of investors, particularly encouraged by the growth prospects for these assets thanks to the digitalization of economies, the craze for cryptographic markets as well as the boom related to AI.
- Thanks to technical analysis, we can easily realize that the trend is gradually losing its strength.
Indeed, new highs are getting lower and lower and the RSI indicator gives us two alarming messages:
1) the bearish divergence between the market and the RSI confirms the trend slowdown.
2) The breakout of the trend line by the RSI indicator tells us about the growing possibility of a bullish trend invalidation from the market. the market.
- Even if the trend remains bullish on this index so far, investors could prefer to remain cautious with regard to the different signals sent by technical analysis.
Indeed, the prospect of a future correction increases every day and could take the index towards 17,180.0pts, 16,600.0pts or even 16,135.0pts by extension.
For the moment euphoria reigns on the market, especially since the latest results published by NVIDIA, but the bubble could well burst soon.
To be continued...
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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.