By Yan Petters – After going through a technical correction, the Nasdaq 100 looks to resume the bullish trend. The index dropped to 1,990 points recently, yet promptly bounced back up to 2,040 points where it’s currently standing. As the trend continues, the index seems to have potential to reach 2,060 points.
• The chart below is the NASDAQ 100 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD and the Relative Strength Index (RSI).
• There is a very clear bullish trend which was initiated at the 1,960 points.
• A bullish cross of the MACD suggests that the bullish trend has more steam in it.
• The Slow Stochastic continues to float above the 80 line, further indicating that the bullish trend has more room to go.
• The next significant resistant level is placed at the 2,060 points, which means that the Nasdaq 100 has potential to reach this level soon.
• If the index will fail to breach through the 2,060 level, it is likely to drop back down towards the 2,040 level.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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