• NQ100_m wobble above support

• Prices trapped within range

• Weekly RSI near overbought levels

• Incoming US data could trigger breakout

• Key levels of interest at 16900 & 16630

After swinging within a range on the daily charts, the NQ100_m could be preparing for a breakout.

The first half of January was a rollercoaster ride for the index thanks to fundamental forces. A string of stronger-than-expected US economic data cooled Fed cut bets, impacting the tech filled NQ100_m index.

Prices are currently trapped within a narrow range near all-time highs, with bulls and bears waiting for a fresh directional catalyst. A significant move could be around the corner, especially when factoring in the incoming US data this week which could influence the NQ100_m which is filled with tech stocks.

Starting on the weekly charts, the NQ100_m is respecting an ascending weekly channel while prices are trading above the 50, 100 and 200-week SMA. However, the Relative Strength Index is hovering near 70, indicating that prices could be heavily overbought. In addition, potential resistance may be found at 17,000 just above the current all-time high.

We see a similar bullish picture on the monthly charts as prices create higher highs and higher lows. The MACD is also trading above zero. It will be worth keeping an eye on how prices behave at the 16995 all-time high. Support can be found around 14,200 – near the most recent higher low.

Placing our attention back to the daily timeframe, it may be wise to keep a close eye on how prices react to support at 16630 and resistance at 16900.

• A strong breakdown and daily close below 16,630 could see a decline towards the 50-day SMA at 16,250

• Should prices push above 16,900, this may open the doors back to the all-time high at 16,995 and beyond.