NAS100 looks strong pre-cash open, but pattern is worrying
The daily NAS100 (left) has a weak bias. It is trading in its bearish channel between the lower blue and red bands. Also, its underlying momentum is to the downside; its stochastic has dropped below 20. The longer it stays there, the greater the prospects for lower prices.
However, the hourly chart (right) is showing strength on the day. We urge caution as it reminds us of a bear market rally. The hourly pattern (blue parallel lines) looks like a flag until proven otherwise. This type of pattern is continuation in nature.
We are wary of the R1 pivot level, which overlaps with price resistance and the 76.4% Fibonacci level. This is a triple confluence of resistance, making it a formidable level for longs and compelling for shorts.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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