Nasdaq (NDX QQQ) Technical view, key chart levels

Ivan Brian FXStreet

Original content: Nasdaq (NDX QQQ) Technical view, key chart levels

Nasdaq (NDX QQQ) approaches key support levels.
Nasdaq underperforming as big tech suffers despite record results season.
Nasdaq (NDX QQQ) looking to break trend support.

The Nasdaq sits at a key juncture as it opens for trading on Thursday. Recent strong earnings from big tech have put the spotlight on the underperformance of the Nasdaq versus other major indices. We can see below how pronounced this has become over the last month. Is the Nasdaq the canary in the coal mine?

For now, the Nasdaq is holding key support at the trendline, however, price appears ready to break as Thursday progresses. This level is currently 13445. This level may function well as a buy the dip strategy as the 50-day moving average support comes in just below.

A break of this area and Nasdaq price will target the 100-day moving average at 13,147 and an ultimate test of the lower trendline at 12,500.

The trend is assuredly negative in the short term. We can see how well the 9 and 21-day averages held the move on the way up and now the Nasdaq has broken both. The repeated failure at breaking the 14,060-14,070 range was a catalyst. This move was confirmed by the muted reaction of the Nasdaq to record-breaking results from the likes of Facebook, Apple and Amazon to name but a few.

The admittedly lagging but useful indicators such as the Moving Average Convergence Divergence (MACD) confirmed this failure to breach 14,060-14,070 by flashing a crossover sell signal. The RSI was also warning us of growing stretched valuations but has since retraced as price has fallen.

Nasdaq Key levels

Support	Resistance
13,495 50-day MA	13,699 9 & 21 day MA
13,445 channel	14,060 -14,070 highs, line
13,296 March 16 high
13,147 100-day MA
12,500 channel
12,209 March 3 low

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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