- The Nasdaq 100 bulls staged further setbacks at the critical 15,270 resistance.
- As the daily RSI shows, the medium-term uptrend is starting to wane.
- A bearish ‘double top’ stands out with neckline support at 14,700.
This is a follow up to the previous analysis “Nasdaq 100 Technical:”Risk of the ceiling blowing off in the medium term” So far, the company’s price action has failed to close above the key medium-term resistance level of 15,270 after breaking above it intraday on 5 July.
Bulls stop again at 15,270 level
Figure 1: US Nas 100 Mid-Term Trends as of July 10, 2023 (Source: TradingView, click to enlarge chart)
After the crucial retest of the 15,270 resistance level on July 5, 2023, which hit an intraday high of 15,283, the US Nasdaq 100 Index (a proxy for Nasdaq 100 futures) fell -2.1% to a low of 14,964. on July 6, 2023.
Additional bearish elements surfaced
Figure 2: U.S. Nas 100 Minor Short-Term Trends as of July 10, 2023 (Source: TradingView, click to enlarge chart)
After breaking out of the overbought territory (above the 70 level), the daily RSI oscillator will issue a bearish divergence signal on July 4, 2023, suggesting that the medium-term uptrend is beginning to wane. ing.
On the shorter timeframe (1-hour chart), the index price action shows an imminent bearish ‘double top’ formation with neckline support at 14,700.
Also on the hourly chart, the price action shows a bearish breakout below minor upside channel support, followed by a crack below the 20-day moving average in today’s Asian session as of this writing. , indicating a possible minor downtrend. The phase may have kickstarted.
To sustain the bearish tone, look to the key medium-term Axis resistance at 15,270, and below 14,965, the next support emerges at 14,700 (the minor ‘double top’ neckline).
However, with clearance above 15,270, we expect the next resistance level to come at 15,500 and 15,690.
