FX.co ★ Trading signals for NASDAQ 100 (#NDX) on January 06 - 07, 2022: buy above 15,625 points (6/8)

The Nasdaq 100 Tech Index fell to a low of 15,597. In just two days this index has lost more than 955 points, which represents a percentage of -4.26%.

At the beginning of the American session, it is rebounding after having reached levels of exhaustion and oversold. probably a technical correction could occur in the next few hours and rise towards the 200 EMA at 16,216.

In the last FOMC minutes, the policymakers said that there would be two to four increases in interest rates this year. The possibility that they simultaneously try to raise rates and reduce bond purchases could affect the performance of the Wall Street indices.

On the 1-hour chart, you can see that the price is bouncing above the support of 6/8 Murray and is now above the 21 SMA. Therefore, a recovery is expected in the next few days towards 7/8 of Murray located at 15,937 and towards the 200 EMA at 16,216.

The Eagle indicator has come to test the key level of 5-points which represents an extremely oversold market. Due to this, we are observing that the index is making a technical rebound. Therefore, you can buy if the Nasdaq 100 trades above 15,750 (21 SMA) or if it bounces back to 6/8 Murray around 15,625.

Support and Resistance Levels for January 06 - 07, 2022

Resistance (3) 16,094

Resistance (2) 15,937

Resistance (1) 15,885

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Support (1) 15,625

Support (2) 15,407

Support (3) 15,312

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Scenario

Timeframe 4-hours

Recommendation: buy above

Entry Point 15,751

Take Profit 15,937 (7/8), 16,216 (200 EMA)

Stop Loss 15,680.

Murray Levels 15,625 (6/8), 15,937 (7/8) 16,250 (8/8)

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