Stock markets in Europe have extended losses in the last hours and Wall Street futures follow the same path.
The negative climate due to the intensification of the crisis in Ukraine is affecting the top 100 technology stocks that comprise the Nasdaq-100 index (#NDX).
According to the 4-hour chart, we can see that the Nasdaq-100 has broken the 21 SMA and is trading below 14,150. We can also see the rising wedge pattern's break which means there could be a technical correction in the next few days towards the support area at 13,750 and up to 13,125.
Yesterday, early in the American session, the Nasdaq attempted to break out of the downtrend channel formed since February 27th. The index failed to exit it due to the fact that EMA 200 is located above this channel, which exerts strong downward pressure.
As the Nasdaq-100 is below the 200 EMA and below the 21 SMA any bounce towards these zones will be seen as an opportunity to continue selling with targets at 13,125.
On the contrary, a daily close above 14.375 (3/8) and a sharp break of the downtrend channel will be a clear signal to buy. This price action could be the beginning of a new upward move so that the price could reach 4/8 Murray at the level psychological of 15,000 points.
The eagle indicator is approaching the overbought zone and it is likely that in the coming hours the NASDAQ will continue its downward trend and could fall below 13,750.
Support and Resistance Levels for March 04 - 07, 2022
Resistance (3) 14,586
Resistance (2) 14,317
Resistance (1) 14,139
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Support (1) 13,750
Support (2) 13,414
Support (3) 13,125
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Scenario
Timeframe H4
Recommendation: sell below
Entry Point 14,150
Take Profit 13,750, 13,125
Stop Loss 14,300
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