NAS100 is an indice which comprises of all the technology stocks on the US stock trading. Trading indices should be a long term portfolio. For this purpose, we will be looking at the weekly chart.

- Market structure: Market structure on NAS 100 is still bullish. What we are anticipating is a bearish move from the resistance formed at $15,500. The bullish momentum is slowing down and market is due a correction after the whole impulse wave. At this resistance level, we will factor in the adjacent parameters.

- Trendline: Market is in an uptrend channel. The resistance trendline has been tested twice and now we are waiting for the third test for our short positions. It should also be noted that the trendline is in confluence with the resistance area. Given the structure of a long bullish trend, the trendline test is bound to push the NAS100 bearish for the correction. Also, we have an ascending trendline in formation which might break once the market starts to head down.

- Retracement: Since the mark-up was major, an appropriate bearish retracement was unable to be drawn.

- EMA's: Both EMA’s are bullish, above the current prices. The EMA 50 has not been retested after the break. This is an added forecast for NAS100 to form a corrective wave to correct its due move by testing the EMA 50. EMA 200 has been broken and tested already.

- Bollinger Bands: The middle band has been pierced and the prices are currently above it. The upper band is in confluence with the resistance level where we would be looking to short.

- RSI/CCI: Both oscillators are bullish right now. What we expect is the market to tap into the over-bought regions for both the oscillators, at which point, bearish divergences will be formed. This will add as a confluence with the resistance as well.

NAS100 is one of the volatile indice and at the resistance level, we are foreseeing at least 3 confirmations to go short on it.

Nasdaq correction due for the uptrend

Jul 28 2021

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