Nasdaq posts massive gains, where will it be heading to?
“Fed signaling slower tightening along with upbeat earnings report spur higher bids upon US equities.”
Equity investors rushed into the US market, with Nasdaq posting gains of up to 4% yesterday. Earlier, Federal Reserve announced to raise interest rates by 75 basis points, well within market’s expectation. During its press conference, Fed Chair Jerome Powell reiterates that future rate hike is highly dependent on upcoming economic data, increasing optimism towards US economy and lowering the chances of Fed tipping US towards recession. Adding up, upbeat quarterly report from Microsoft and Alphabet amplified market’s confidence towards US economy.
Quick recap on US100
US100 make a quick U-turn, failing to plunge through strong support of 11148.
US100 Weekly Technical Analysis
The index has recovered substantially following previous rebound. MACD began to illustrate bullish momentum which may signal further upside ahead.
US100 Daily Technical Analysis
From daily perspective, US100 is currently testing at 12907, one of the key resistance levels to look out for. A close above the level will provide confirmation towards further bullishness ahead in mid-term.
Trading Idea
ORDER: BUY STOP
ENTRY: 13100
STOP LOSS: 12680
Target 1: 13560
Target 2: 13900
ZFX Analyst’s Comment
US equities is expected to stage a comeback following recent rejection from the downside. The new wave which has formed may extend its bullishness albeit a confirmation close will be required for the time being.
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