The Nasdaq 100 (US Tech 100 mini on FXOpen) has recently faced some uncertainty in its price behaviour near the resistance level of 18,840. A decline in price was seen followed by a test of the former resistance at 18,250. This test showed aggressive demand, as indicated by the long lower shadow on the candle. Despite this, the bulls gained confidence and managed to break through the 18,840 resistance.
In June, the price of the Nasdaq 100 continued to rally within an ascending channel, which is part of a larger ascending channel. This upward momentum was driven by the prospects for AI implementation and the expectations of Fed rate cuts. The recent increase in price saw the Nasdaq 100 reaching the psychological level of 20,000 points, supported by influential analysts raising their forecasts for US stock markets.
Market sentiment has been positively influenced by anticipations of comments from FOMC members regarding potential rate cuts. Technical analysis of the Nasdaq 100 indicates that the price is in the upper half of the larger channel, with potential support at the median line. The price is also near the upper boundary of the smaller channel, suggesting possible resistance. This could lead to a retreat from the psychological level of 20k towards the lower boundary of the green channel.
It is likely that the current bullish drivers will remain relevant until September, allowing the Nasdaq 100 to continue its upward trajectory towards the upper boundary of the larger channel. Despite these positive indicators, it is important to proceed with caution and closely monitor market developments. As always, trade global index CFDs with proper risk management strategies in place to mitigate potential losses.