NASDAQ 100 Testing Trend Line
The has reached a key resistance zone here after a sharp recovery over the last few days:
As you can see, the tech-heavy index is testing a bearish trend line around the 14200-14300 area. Here, we also have the 21-day exponential moving average coming into play.
What the bears would like to see here is a reversal, ideally a sharp one at that, to take us below Monday’s low. I would then expect a continuation to a new 2022 low thereafter if that happens.
As far as the bulls are concerned, they still need to see some further bullish price action to boost their confidence amid the ongoing situation with Russia/Ukraine. A closing break above this trend line would be a welcome sign.
All told, I am leaning more towards the bearish argument than bullish here and, as such, would be looking for bearish patterns to emerge to sell into this recovery.
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