Wall Street opened this Monday with mixed trading. One of the benchmark stock indices, the Dow Jones Industrial Average, rose 0.66% and exceeded 35,000 points for the first time, driven by the energy sector, while technology companies are weighed down the Nasdaq index 100, #NDX.
The Nasdaq technology index, which brings together the most important technology companies, is trading at 13,660 at the time of writing this article, within a downtrend channel in 4-hour charts and with the last support at the 200 EMA zone located 13,603.
The #NDX technology sector is showing a downward bias, causing this downward movement due to some doubts due to its high valuation in some technology companies after the months of the pandemic and its attractiveness in the economic reactivation, when inflation is expected to increase. So we see a drop in Intel, Apple and Microsoft.
On a technical level, we can see that the Nasdaq 100, #NDX, is trading within its bearish channel, there could be a bullish rebound at 13.603, there is the SMA of 21 and also the EMA of 200, both offer good support to the Nasdaq.
This 6/8 murray level is strong support, as it had previously formed a double bottom, and if the Nasdaq fails to break to the downside there could be a bullish rebound.
Conversely, a break below the 21 SMA and 200 EMA, there could be a continuation of the downward movement to the 13.437 (6/8) support zone.
A 6/8 break of murray could take it to the 13.194 support area of the bearish channel support. Our recommendation is to wait for the breakout and consolidation below 6/8 so you can sell to 13,194.
Support and Resistance Levels for May 10 - 11, 2021
Resistance (1) 13,671
Resistance (2) 13,704
Resistance (3) 13,823
Support (1) 13,596
Support (2) 13,478
Support (3) 13,370