In the early American session, the Nasdaq 100 technology index, #NDX, is trading inside the bullish channel, after having made a correction to the support of the lower line of the channel. It is now showing signs of a further bullish movement.
The FED announced two increases in the interest rate to 25 basis points in 2023. This represents a sharp change of rhetoric with respect to the previous meeting, in which none of these officials expected any increase during this year.
Such hawkish rhetoric strengthened the US dollar, but this announcement made a bigger impact on the currency market. The Nasdaq #NDX only had a small correction to the bottom of the bullish channel of around 13,830.
In the 4-hour chart, you can see the uptrend channel. If the Nasdaq 100 #NDX is above this level, it is expected to continue its upward movement until reaching the 21 SMA levels around 14,020. If it breaks this level, it could reach the 6/8 murray resistance at 14,137.
On the contrary, a consolidation below 13,820 and a sharp break of the bullish channel will be a good opportunity to sell with targets up to the EMA of 200 located at 13,612.
Our recommendation is to buy above the lower line of the bullish channel with targets at 14,020 and 14,137. The eagle indicator is showing a bullish signal.
Support and Resistance Levels for June 17 – 18, 2021
Resistance (3) 14,103
Resistance (2) 14,020
Resistance (1) 13,958
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Support (1) 13,894
Support (2) 13,815
Support (3) 13,696
