The infamous FAANG stocks have been under pressure of late but looking at the bigger picture, the Nasdaq 100 is still pushing higher ever so slightly.
Looking at the chart below we can see the index has been in an uptrend from April and has given dip buyers great opportunities to buy from the support line (red dotted). We need to see the price move higher from current levels to support a positive outlook.
In this note you will find my technical charts and trade summary:
Technical outlook
Taking a closer look at the chart below we can see the price is still trading above the 50-day simple moving average (SMA) and that the Relative Strength Index (RSI) is pointing higher ever so slightly. The formation of a bull flag might also playout supporting a move higher from current levels.
Take note: if the support level does not hold then that will negate the outlook that the price will move higher back to all-time highs.
Source: Bloomberg
Trade: Nasdaq 100
- Entry (buy): 7420
- Stop loss: 7338
- Target price: 7506
Source: Bloomberg
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