The technology sector is in the spotlight this week, as tech heavyweights report their quarterly results, starting with Microsoft and Alphabet (Google) today, followed by Meta Platforms (Facebook), Amazon.com and Apple over the next couple of days.
This comes hot on the heels of last week's results from Tesla, which were strong despite demand fears, as well the impressive subscriber growth from Netflix, which was the first of the FAANGs to report.
Positive results this week, could help NAS100 extend its recent rebound from the 2+ year lows, but caution is needed as we expect PCE inflation update and Q3 preliminary GDP from the US on Thursday, which can also affect its trajectory.
The tech-heavy index remains constructive this week, eying key resistance area. It probes the EMA200, which is followed by the ascending trendline from the summer highs and the 38.2% Fibonacci of the drop form these highs to the October lows, at around 11,560-11,693.
Daily closes above this level could shift near-term bias to the upside and open the door to above 12,000-12,080 recovery.
We are cautious at this stage though, since below the 11,560-11,693 region, the recovery is viewed as a limited correction and risk remains on the downside. As such, NAS100 is still vulnerable to sub-11,000 moves and there is scope for fresh lows towards 10,089, although the latter has a higher degree of difficulty for now.
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.