In the American pre-market, the Nasdaq 100 #NDX technology index is trading above its uptrend line and above the SMA of 21. The bias continues to be bullish for this index and in the next few hours it could reach up to the area of 13,593 and 13,750
The 6/8 of murray has now become strong support for the Nasdaq, #NDX, as it could continue to give it bullish strength until reaching the 8/8 of murray resistance level located at 13,750.
The panic that inflation generates among investors continues, not so much because of its impact on economic growth. It can also end up being very harmful due to the fact that it can cause the process of withdrawal of monetary stimuli by the major central banks.
Undoubtedly this factor can cause strong and sudden movements in the Nasdaq index and other indices, and could give a lot of volatility to the market.
This is the last full week of the month. So many investors could take profit on Friday or liquidate their positions which could lead to some volatility before the close of the weekend.
In the 1-hour chart above, we have traced the uptrend channel maintained by the Nasdaq. If it remains above 6/8 of a murray, the bias will continue to be bullish.
On the contrary, in case of a break below the 6/8 of murray and below the 21 SMA, we expect a correction to the dynamic support of the 200 EMA around 13.280.
Our recommendation is to keep buying above the SAM of 21 or if there is a technical bounce at 6/8 murray with targets at 13,593 and 13,750.
Support and Resistance Levels for May 24 – 25, 2021
Resistance (3) 13,692
Resistance (2) 13,629
Resistance (1) 13,519
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Support (1) 13,345
Support (2) 13,281
Support (3) 13,172
