The Nasdaq 100 Index has been hitting record highs, climbing nearly 8% in the second quarter driven by Wall Street’s enthusiasm for the AI narrative. As we move into the third quarter, here are some key levels to watch out for using technical analysis.
The index has been trending higher since mid-April, setting a record close recently. However, indicators on the chart suggest a potential slowdown in momentum. Trading volume has decreased in recent days, and the RSI has shown a bearish divergence, indicating easing buyside pressure.
Here are the key levels to keep an eye on for potential retracements:
– If there is an initial pullback, watch for support around the 19,500 level.
– A further decline could find support near 18,900, where a horizontal line connects prices from late May to early June.
– If the index drops below these levels, look for support around 18,400, near a trendline connecting previous highs.
– In the event of a broader correction, a retest of the April low at 16,974 could be possible.
For those looking for a longer-term upside target, a bars overlay pattern projects a price target of around 22,000 based on the index’s trending move from October last year to March this year added to the April swing low.
It’s important to note that the views expressed are for informational purposes only. Keep an eye on these key levels as the Nasdaq 100 Index continues its upward trend in the tech sector.
