The Nasdaq 100 Technology Index (#NDX) is trading higher above its uptrend channel that has been going on since October 4. The index is also located above the 21 SMA and above the strong support of 6/8 murray located at 15,625.
At the beginning of the Asian session, the Nasdaq 100 technology index is trading at 15,650. Since it remains above the uptrend channel, it is likely to make a technical bounce around 6/8 of murray. Besides, if it reaches the bottom of the trend channel, this could be a good point to buy with targets up to 15,850. The index could go up to 15,937 where there is 7/8 of a murray that indicates a reversal.
A sharp break below the 21 SMA and 6/8 murray could be the start of a bearish scenario and we could expect a drop to 5/8 Murray (15.312). If bearish force prevails, the index could fall to the EMA of 200 located at 15,200.
Today, October 29, is the weekend of operations. On the last day of October, it is likely that there will be strong volatility in the market at the close of the trading session, so we must be very careful. One strategy would be to continue buying according to the main trend. Alternatively, if it trades below 15.590, it will be a bearish sign.
Since October 25, the eagle indicator has been generating a negative divergence signal. The market is likely to exhaust a volume and strength. To make sure of it, we should wait for a break below the SMA of 21. Thus, the bearish movement will be confirmed and we will have an opportunity to sell.
Our trading plan for the next few days is to buy as long as the index remains above 15,698. If this level is broken, we should expect a consolidation below this zone. Then, we should sell because the market is likely to make a technical correction towards EMA of 200 located at 15,200.
Support and Resistance Levels for October 29 - November 01, 2021
Resistance (3) 15,861
Resistance (2) 15,729
Resistance (1) 15,677
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Support (1) 15,580
Support (2) 15,493
Support (3) 15,397
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A trading tip for NASDAQ 100 for October 29 - November 01, 2021
Sell below 15,598 (SMA 21) with take profit at 15,312 (5/8) and 15,200 (EMA 200), stop loss above 15,680.
