The overall technology sector strongly rebounded behind semiconductor manufacturers, with the PHLX Semiconductor Index rising 5.0%. Heavyweight NVIDIA (+8.0%) was the industry’s biggest gainer, while Intel (+3.1%) rallied after confirming plans to spin off its Mobileye unit, which is valued at about $50 billion. Therefore, the Nasdaq (US100) gained 3.03%. From a technical point of view, is there any room for further rises ?
D1 interval :
The sell-off associated with the new variant pulled Nasdaq prices towards support at 15,540 pts. The rebound of technology stocks allowed the index to erase part of the decline and cross the kijun at 16,150 pts, coinciding with the Fibonacci retracement at 50%. It is interesting to note that the price decline ended when the lagging span met a green Japanese candlestick, and refused to cross it (yellow circle). For now, the next resistance can be found at the 78.6% Fibonacci retracement at 16,500 pts.
US100, D1 interval, Source : xStation5
H4 interval :
In the H4 time frame, several elements confirmed the price recovery; first, the break of the kijun at 15,980 pts. Secondly, the crossing of the 200 SMA (yellow square) was a strong signal, and finally, the cloud crossing confirmed the uptrend. Now, the validation of the buy signal generated when the cloud was crossed is necessary to consider further rises. Such validation would occur if the lagging span manages to break out of the cloud (yellow circle). In this case, the way would be open towards the all-time highs. On the other hand, if the span fails to break out of the cloud, a pullback of prices to the cloud is very likely, around 16,260 pts.
US100, H4 interval, Source : xStation5
Reda Aboutika, XTB France