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Nasdaq100 technical levels

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Nasdaq100 technical levels

The index founded in 1971 by the National Association of Securities Dealers (NASD and in English).

It is a weighted by capitalization, which gives a greater weight to companies with large market capitalization.

Analysis of the last three years

Analyzing its evolution in the last 3 years, we observe that the Nasdaq100 touched minimums in the month of March 2020in lot 6,837, starting from that date an upward pattern of 18 months, until the maximum at 16,670 of the month of November 2021. This represents a revaluation of almost 244%.

read confinement measures established as a result of the Covid pandemic promoted the use of new technologies, both to work and to relate and communicate, which clearly had an impact on the strong revaluation of technology companies.

Because it is an index that integrates the largest technology companies, which are listed on Wall Street, It has been the selective one with the highest price increase It has had since the minimum marked in March 2020 (Covid Pandemic).

the comparative revaluation between selective is the following (from the minimum of 2020 to the maximum of 2021): Nasdaq100 244%, S&P500 110% and Dow Jones 92%. As you can quote by percentage increase numbers, the difference is substantial.

Source: TradingView&iBroker

At the current time, it is about 14,600-14,700 points, having a drop of -11% compared to the all-time high of the new year of 2021.

The Nasdaq100 has broken through the 20 and 50 day moving averages during late 2021 and early 2022. The prize has stopped at the moving average of the 100 sessionssettled down in the morning from 13.000-13.100which has updated support.

The long-term moving averages (100 sessions) are widely used by “Buy&Hold” investors as an indicator of the asset price trend, both continuity and change, if they are broken wide and there is no return figure.

The index reflected a low of the year (13,046) on March 14. Levels they haven’t seen since February 2021.

From the price currently reflected by the index, and after bouncing from the support of the 100-session moving average, right now it seems more likely that the price will seek the resistance of the historical highs, in a total of 16,490. In case of exceeding it, it would place the value in “free rise” without technical references.

In turn, it will have lost to be aware that the annual minimums of March 14 are not. If it does, it could take the index to levels not seen for more than a year, and therefore continue the correction without key supports until around 11,000 (end of 2020).

It is important that, in the event of any movement, it is accompanied by a substantial increase in the volume traded, because that would mean a reinforcement of the trend by the market investor. The volume of it is a relevant indicator for the analysis of technical data that can give greater reliability or validity to the action carried out by the selective.

Analyzing the chart of the future E-mini Nasdaq100

Source: TradingView&iBroker

On the chart, in one-hour Japanese candlesticks on the Nasdaq100 Mini Future, we can see that the price increase is in sync with an increase in volume (green and red bars in the lower right area), enhancing the validity of the movement.

The indicator of the volume of free Market Data services is as follows iBroker make available to their users (both in Demo Account and in Real Account).

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The comments made in this article, the possible operations suggested or proposed and the material provided are for purely educational purposes. In no case does it constitute professional advice, an investment proposal or an operational recommendation. iBroker Global Markets Sociedad de Valores, SA is not responsible for the consequences of the information disseminated nor can it guarantee that the information is accurate and/or complete.

Futures and Options are also complex instruments and come with a high risk of losing money rapidly due to leverage. Futures and Options do not have negative balance protection and losses could exceed the balance deposited in your account.

Each investor must assess the risks of financial instruments, as well as their knowledge of the functioning of the markets before carrying out operations with complex products.

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