- The bulls of the Nasdaq 100 have staged another retreat at the key 15,270 resistance.
- Medium-term upside momentum has started to wane as indicated by the daily RSI.
- Minor bearish “Double Top” sighted with its neckline support at 14,700.
This is a follow-up on our prior analysis “Nasdaq 100 Technical: “Risk of a medium-term blow-off top” published on 27 June 2023. So far, its price actions have failed to have a daily close above the 15,270 key medium-term pivotal resistance after an intraday breach above it on 5 July.
Bulls halted again at the 15,270 level
Fig 1: US Nas 100 medium-term trend as of 10 Jul 2023 (Source: TradingView, click to enlarge chart)
After a retest on the key 15,270 resistance level on 5 July 2023 (printed an intraday high of 15,283), the US Nas 100 Index (a proxy for the Nasdaq 100 futures) has staged a decline of -2.1% to print a low of 14,964 on 6 July 2023.
Additional bearish elements have emerged
Fig 2: US Nas 100 minor short-term trend as of 10 Jul 2023 (Source: TradingView, click to enlarge chart)
The daily RSI oscillator flashed a bearish divergence signal on 4 July 2023 after it exited from its overbought region (above 70 level) which suggests that medium-term upside momentum has started to wane.
In a shorter time horizon (1-hour chart), the price actions of the Index have traced out an impending minor bearish “Double Top” configuration with its neckline support of 14,700.
Also, on the 1-hour chart, the price actions have staged a bearish breakout below the minor ascending channel support followed by a crack below the 20-day moving average in today’s Asian session at this time of the writing that indicates a potential minor downtrend phase may have kickstarted.
Watch the 15,270 key medium-term pivotal resistance to maintain the bearish tone and a break below 14,965 exposes the next support at 14,700 (the neckline of the minor “Double Top”).
However, a clearance above 15,270 sees the next resistances coming in at 15,500 and 15,690.
