FX.co ★ Trading Signal for Nasdaq 100 (#NDX) for June 02 - 03, 2021: Buy above 13,666

In the early American session, the Nasdaq 100, #NDX, is trading above the SMA of 21 located at 13,437 according to a daily chart. There is also the 3/8 of murray, thus combining and forming strong support higher at 13,750. Traders have not been able to break strong resistance in several attempts every day.

As the Nasdaq sits above the 21 SMA on daily charts, this is a sign of a medium-term bullish bias that could give it bullish momentum to the 14,062 area, a very clear and easy target to achieve for the Nasdaq.

Technology investment funds have suffered their worst money outflow streak in 3 years. In fact, the week ended May 23 saw an outflow of $ 1.1 billion.

The ten-year public spending plan that Biden wants to implement and that aims to be financed through tax increases on technology companies, could weaken the strength of the Nasdaq index in initiating a long-term downward cycle.

Also, investors and traders are keeping an eye on the issue of inflation, given its importance and concern. Some think that it is something purely transitory, while others argue that it is something more structural.

According to technical analysis, as long as the Nasdaq 100 remains above the key level of 13,437, it is expected to continue its upward trend in the medium term. Despite market fears, the #NDX remains bullish, and has as target in the 14,000-point zone.

Our recommendation is to buy at current price levels. In addition, a break of 4/8 of murray will give us a new buying opportunity. On the contrary, a technical rebound in the area of 13,437 will be a good opportunity to sell.

Support and Resistance Levels for June 02 – 03, 2021

Resistance (3) 13,926

Resistance (2) 13,849

Resistance (1) 13,746

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Support (1) 13,567

Support (2) 13,488

Support (3) 13,387