Nasdaq-100 fell sharply in the middle of the American session on Monday. This fall is due to the uncertainty about the Russian invasion into Ukraine and the investors' concern about aggressive tightening of monetary policy by the Federal Reserve.
The Nasdaq-100 is currently trading at 14,218. Amid the bearish pressure, the index could make a bounce around the key $14,000 level. The Eagle indicator has reached extreme oversold levels. A technical correction is likely in the next few days above 14,000 or if there is a bounce off around 13,750 (2/8 Murray).
The main trend remains bearish according to the daily chart. Trading through the support 2/8 Murray (13,750) will indicate a resumption of the downtrend.
Nasdaq-100 is likely to trade between 3/8 Murray and 2/8 Murray around 14,375 and 13,750 in the coming days. Above 14,375, a strong upward move is expected towards the EMA 200 located at 15,000 points.
Our trading plan is to buy if it bounces around 14,000 points. Or wait for the rebound at the low of yesterday at 13,750, with targets at 14,275 and up to 15,000 points.
Support and Resistance Levels for January 25 - 26, 2022
Resistance (3) 14,834
Resistance (2) 14,526
Resistance (1) 14,375
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Support (1) 14,022
Support (2) 13,959
Support (3) 13,750
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Scenario
Timeframe H4
Recommendation: buy in case of rebound off
Entry Point 14,000
Take Profit 14,375 (3/8) 15,000 (4/8)
Stop Loss 13,920
Murray Levels 13,750 (2/8) 14,375 (3/8) 15,000 (4/8) 15,625 (5/8)
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