Last week ended badly for equity investors, with the Nasdaq-100 hardest hit, having printed a loss of more than 9%.
This week the Nasdaq-100 (#NDX) is expected to recover. Earnings of some technology companies will be published.
Facebook (FB), Apple (AAPL), Microsoft (MSFT), Google (GOOGL) and Amazon (AMZN) report their earnings this week. It could favor the recovery of the Nasdaq-100.
In addition, comments on supply chains and prospects will be crucial as the port of Shanghai remains at a standstill.
Bond markets are likely to calm down this week as Fed members are now on hold ahead of the interest rate decision to be announced in the first week of May.
Therefore, a combination of strong tech gains and a lack of aggressive commentary could cause a relief rally for the Nasdaq-100 in the coming hours.
According to the 4-hour chart, we can see that since the end of March the Nasdaq-100 started a bearish sequence. It is currently trading above the 8/8 Murray and around the support of bearish channel.
Technically we could expect a technical bounce above 13,125. If the Nasdaq-100 manages to consolidate above the 21 SMA (H1) located at 13,290 in the next few hours, we can expect it to continue its bullish move towards 3/8 Murray at 13,450.
As long as the Nasdaq consolidates above 13,300, it is likely to reach the zone of 4/8 Murray in the next few hours and the level 21 SMA located at 13,750 and 13,769.
The eagle indicator is giving a positive signal. However, it is likely that a clear consolidation could signal a technical bounce in the coming hours.
