Despite the last two sessions of outperformance seen on the Nasdaq 100 against the other major US stock indices (S&P 500, DJIA, Russell 2000), technical analysis suggests that the US Nasdaq 100 CFD Index is likely due for at least an imminent minor corrective decline sequence within its medium-term uptrend phase.
Since 3 July, the price actions of the US Nasdaq 100 CFD Index has consolidated and stalled at the upper boundary of a long-term secular ascending channel in play since the March 2020 low,
Only for the first time on Tuesday, 15 July, since the consolidation started on 3 July, the US Nasdaq 100 CFD Index has formed a daily bearish reversal “Gravestone Doji” candlestick pattern after a failed intraday push above the upper boundary of the long-term secular ascending channel (see Fig 2).
These observations suggest a potential “bullish exhaustion” moment on the US Nasdaq 100 CFD Index in light of Nvidia’s (a significant component stock of Nasdaq 100) positive news flow that allowed it to sell lower-grade H20 chips to China.
Watch the 22,920/23,020 pivotal resistance, and a break below 22,600 is likely to expose the next intermediate support zone of 22,390/22,235 in the first step.
However, a clearance above 23,020 invalidates the bearish scenario to resume the bullish impulsive up move sequence for the next intermediate resistances to come in at 23,190, and 23,400/23,480 (defined by Fibonacci extension cluster levels).
