BEARISH JULY MONTH ON NQ
The US technology index saw its price reach 20,771 points for the first time since its inception.
The long-term uptrend is clearly identifiable since the January 2023 rally. Technically, it remains intact, with breakouts and retests at every key price level.
At the time of writing, few hours to go before the weekend and a few days to go before the end of the month, the NQ is posting a negative performance (-8.4%) for July.
This correction would be interpreted as ‘technical’ if the index rebounds to the 18,300 - 18,500 price zone. This price zone acts as support.
In a buy scenario, it would be wise to wait for a reversal signal on this support zone. Bear in mind that the long-term trend line lies just below this zone and that the RSI is also moving above the uptrend line, which has been tested on numerous occasions.
In a bearish scenario, which would be the most likely given the general situation on the equity market, the US technology index could drop a few more percentage points.
The big selling signal would be a break of the long-term trend line, which could take the price back to the next major support zone between 16,500 and 17,000 points. This support zone also represents the index's former all-time highs. A break of the long-term trend line on the RSI would reinforce the price.
Maxime Dominguez - Technical Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The long-term uptrend is clearly identifiable since the January 2023 rally. Technically, it remains intact, with breakouts and retests at every key price level.
At the time of writing, few hours to go before the weekend and a few days to go before the end of the month, the NQ is posting a negative performance (-8.4%) for July.
This correction would be interpreted as ‘technical’ if the index rebounds to the 18,300 - 18,500 price zone. This price zone acts as support.
In a buy scenario, it would be wise to wait for a reversal signal on this support zone. Bear in mind that the long-term trend line lies just below this zone and that the RSI is also moving above the uptrend line, which has been tested on numerous occasions.
In a bearish scenario, which would be the most likely given the general situation on the equity market, the US technology index could drop a few more percentage points.
The big selling signal would be a break of the long-term trend line, which could take the price back to the next major support zone between 16,500 and 17,000 points. This support zone also represents the index's former all-time highs. A break of the long-term trend line on the RSI would reinforce the price.
Maxime Dominguez - Technical Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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