In the 4H chart, the technology index NASDAQ 100 (#NDX) is trading above the 21 SMA. This is the key level as a break below it could put the Nasdaq under downward pressure and push it to the 200 EMA support.
Observing the 4-hour chart, we note that the Nasdaq has formed the Ascending Wedge technical pattern. Furthermore, we can see that the Nasdaq has already broken the pattern which is a sign that there could be a downward movement of technical correction towards the level of 14,870 in the next few hours.
The key to a bearish acceleration is to wait for the Nasdaq 100 to fall below the 15,050 (21 SMA) and consolidate below this level. This will be a signal to sell with targets at the psychological level of 15,000 and up to the EMA 200 located at 14,870.
Since the 200 EMA could offer some support to the Nasdaq, we can expect a technical rebound in that area. If the downward pressure prevails, we should avoid buying, as it will be an additional signal to continue selling the Nasdaq with the next target at 14,375, a level of 6/8 Murray.
The market sentiment is likely to deteriorate due to the increase in the Delta COVID-19 cases. Besides, a rise in inflation could affect the Nasdaq market, and there could be a drop towards the 14,000 level in the short term.
The technical reading of the Eagle indicator is showing a bearish signal. Due to the low volume shown by the indicator, there is a probability of a technical correction for the next few hours. The key level lies at 15,050, below this level we can sell.
Support and Resistance levels for August 16 - 17, 2021
Resistance (3) 15,300
Resistance (2) 15,216
Resistance (1) 15,166
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Support (1) 15002
Support (2) 14,890
Support (3) 14,781
