FX.co ★ Trading signal for NASDAQ 100 (#NDX) on December 06 - 07, 2021: buy above 15,625 (6/8- strong support)

The Nasdaq 100 Technology Index (#NDX) is trading below the 21 SMA and above strong support of 6/8 Murray. The downtrend channel maintains the NDX index, oscillating within a downward bias. Therefore, a technical bounce towards the 21 SMA is expected in the next few hours.

On Friday last week, it was observed for a moment that the index broke the 200 EMA, trading above 16,000 points, but the disappointing US employment data along with Omicron's concerns led to a drop of more than 500 points to the low of 15,535.

Since the zone of 6/8 Murray represents strong support and coincides with the bottom of the bearish channel, it will be a good opportunity to buy around 15,625, targeting 15,982 (200 EMA).

Conversely, if the Nasdaq 100 settles below 15,550 and makes a daily close below Murray's 6/8, it could continue the downtrend until falling to the zone of 5/8, around 15,312.

Our trading plan is to buy above 15,625, targeting the 200 EMA around 15,982. At this level, if the index fails to break, then it will be an opportunity to sell with targets at 6/8 and up to 5/8 Murray.

The eagle indicator is trading near the oversold zone. On Friday, December 3, it reached the 5-point zone, representing an imminent technical rebound in the coming days. This signal could support our strategy to buy above 15,625.

Support and Resistance Levels for December 06 - 07 2021

Resistance (3) 16,023

Resistance (2) 15,891

Resistance (1) 15,780

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Support (1) 15,625

Support (2) 15,440

Support (3) 15,312

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A trading tip for NASDAQ 100 on December 06 - 07, 2021

Buy above 15,625 (6/8) with take profit at 15,982 (200 EMA), stop loss below 15,550.