NAS100 pulls back to weekly support level
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Regarding the weekly time frame, the NAS100 has charted a higher trough, followed by a higher peak. This is an uptrend.
The index has pulled back over the past weeks but now finds itself at resistance turned support (shaded green horizontal).
The candle at this level is a spinning top (blue arrow). Friday's trade is yet to complete and the candle may change shape. Nevertheless, the spinning top suggests uncertainty. Bears tried to take the index down. Bulls tried to take it higher. Both were rejected. This leaves the index flat on the week, with one day left for trade.
The previous three candles, prior to this week's spinning top, show a bearish bias. Therefore, the current uncertainty at a support level may suggest that the bearish momentum, for this leg, has run its course.
It is worth monitoring the index's RSI. It remains on the bullish side of 50 (green rectangle). If it drops below and holds, the support level will be at risk. However, if it maintains at current levels, the index may chart the next higher trough in the series.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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