Nasdaq-100 Tech Index (#NDX) is trading at 14,564 below the 21 SMA and 200 EMA and within a downtrend channel.
Yesterday, Wall Street indices performed well, boosted by the easing of tensions over a possible invasion by Russia into Ukraine. The S&P 500 rises 1.55%, the Dow Jones 1.22% and the Nasdaq more than 2%.
The main trend is bearish according to the daily swing chart and the 4-hour chart. However, momentum will turn to the upside after a daily close above 14,600 and could be the start of a short-term uptrend.
According to the 4-hour chart, the Nasdaq-100 could start a bullish move if it consolidates above 14,600. The next target will be the area of 14,926 and the psychological level of 15,000 points.
On the other hand, if the index trades below the 21 SMA located at 14,599, it is likely to continue its downward move towards the support of 2/8 Murray located at 13,750.
The eagle indicator continues to show a negative signal and the downward pressure is likely to dominate the Wall Street market. A drop to the zone 5-point could occur again only if the Nasdaq-100 trades below the psychological level of 15,000 (4/8 Murray).
Our trading plan for the next few hours is to buy the Nasdaq-100 only if it consolidates above 14,600 with targets towards the 200 EMA at 14,900 and up to 4/8 of Murray at 15,000. On the contrary, we could continue with the bearish strategy as long as it remains trading below the 21 SMA with targets at 13,750 (2/8)
Support and Resistance Levels for February 16 - 17, 2022
Resistance (3) 15,000
Resistance (2) 14,871
Resistance (1) 14,731
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Support (1) 14,342
Support (2) 14,093
Support (3) 13,935
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Scenario
Timeframe Daily
Recommendation: buy above
Entry Point 14,600
Take Profit 14,926,15,000
Stop Loss 14,520.
Murray Levels 13,750 (2/8), 14,375(3/8), 15,000(4/8), 15,625 (5/8)
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