Market Outlook

Chart of the week – US NDAQ 100 may see a short-term rebound

Chart of the week – US NDAQ 100 

US NDAQ 100 may see a short-term rebound

Short-term technical analysis

Source: CMC Markets

Time stamped: 6 Mar 2021 at 2:30 pm SGT

  • The current plunge of -11.5% seen from its current all-time high of 13,906 printed on 16 February 2021 has reached a significant potential inflection zone of 12,400/12,180 which is defined by the pull-back support from the former swing high of 2 February 2021, 61.8% Fibonacci retracement of the recent up move from 10 November 2020 low to 16 February 2021 high and the 1.00 Fibonacci expansion of the recent decline from 16 February 2021 high to 23 February 2021 low projected from 2 March 2021 high.
  • The 4-hour RSI oscillator has reached its oversold sold region and flashed a bullish divergence signal in place since 26 February 2021 which indicates that the recent push down in price action from 2 March 2021 swing high of 13340 may have reached a “wash out” downside momentum condition where price action has the potential to shape a short-term bullish reversal.
  • As long as the 12,180 key short-term pivotal support holds, the US NDAQ may shape a short-term tactical bounce to retest 12,805 and a break above it opens up scope to target the next resistance at 13,340 (also the 61.8% Fibonacci retracement of the current decline from 16 February 2021 high to 5 Mar 2021 low).
  • On the other hand, a break below 12,180 sees a further sees a slide towards the next support at 11,770 (the ascending trendline from 21 September 2020 low & the 200-day moving average).