NASDAQ 100 : The Overall Index is making new highs from the past 6-7 month small corrections are seen in between but as it is said corrections are the best opportunity to enter the market.

Recently we saw some correction in the Index and again buying pressure was observed which let the market close higher before previous day closing.

After some observation I have some insights which can be useful ahead to make a position.

1. On the Daily Chart we can observe the index is following a parallel channel and this parallel channel has not been yet broken at lower nor at upper level, Recently the Index has touched the lower trend line of the parallel channel and a bounce back was seen immediately that day itself. Suggesting buyers are interested in buying the index at lower levels.
If we draw a Regression line it is following the regression line really well which still suggests upward movement.

Recently on 7th July 2021 we saw sellers getting active again in the market from a recent high made after correction and the next day it was followed by.

On 9th July 2021 we saw bulls again taking the charge in the market which was followed by the next day.
This all is suggesting that there might be a fight going between buyers and sellers ahead.
But there is an understanding which says that if the Index closes above 14895 for consecutive 2 days we might see bulls overtaking the bears from the market which can lead the index to new highs.

2. On the hourly Chart the Index was following the trendline for a long time till it broke and came down to 150 points nearby and again a bounce back was seen.

Now the stock is near the trend line and has been trading in a range for at least a couple of hours which suggests waiting for entry.

Here we have to wait for the index to close above the trend line which is above 14850.

3. The Index recently in 1 hour time frame has seen it has crossed its median and close above it, which still suggests buy till the time it does not close down the median.

On the other hand RSI is suggesting strength as well. The RSI recently tested the 20 level then went upto 60 level and the close above 60. It has been observed that when the RSI from the lower level of 20 crosses 60, RSI is able to touch 80 levels. We need to observe this as well while taking an entry.
Another strong support has been given by MACD which has crossover on the positive side and is showing strength.

Overall the oscillators and the indicator are suggesting strength to the move on the upside.

Advice : Close above 14850 on hourly basis will be a good buy opportunity if the above conditions are not violated.
If any one wants to carry the position, the closing should be above 14895 to do so.

Buying Opportunity..

Jul 11 2021

4

1