NASDAQ 100 TECHNICAL FORECAST:

• Nasdaq 100 breaks above main technical resistance at 13,740 and rises to its greatest degree since April 2022
• Whereas the technical backdrop seems to be constructive, the market seems stretched and near overbought situation, signaling a near-term pullback shouldn’t be dominated out
• This text seems to be at NDX’s key ranges to observe over the approaching days

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The Nasdaq 100 (NDX) prolonged its advance and staged one other first rate rally on Thursday, powering by means of resistance at 13,740 and notching a recent 2023 peak within the course of, signaling that consumers stay accountable for the market on Wall Avenue, undeterred by the difficult financial panorama and looming headwinds on the horizon.

In late afternoon buying and selling, the technology-focused benchmark was up 1.3% to 13,823, its greatest degree since April 2022, boosted by robust performances from Nvidia and Alphabet through the session. With these positive aspects, the Nasdaq 100 has managed to climb greater than 24% because the starting of 2023, defying gravity and the doom-and-gloom narrative.

From a value motion standpoint, Nasdaq 100 stays in an uptrend though most of its year-to-date positive aspects have been pushed by megacap tech. In any case, the index has been establishing larger highs and better lows in latest months, overtaking each the 200- and 50-day easy transferring averages, two key bullish developments in response to technical evaluation.

Regardless of the constructive bias, warning is warranted because the market seems stretched and near overbought situation, as proven by the 14-day Relative Energy Index. The final 4 occasions this oscillator reached excessive readings close to or above the 70 threshold, a sell-off occurred shortly thereafter. Merchants ought to hold this in thoughts going ahead.

Specializing in doable eventualities, preliminary assist rests at 13,740 within the occasion of a setback. If this flooring is taken out, promoting strain might collect tempo, setting the stage for a pullback towards 13,350. On additional weak spot, the main focus shifts decrease to the psychological 13,000 degree.

On the flip facet, if the latest breakout is sustained and costs keep above 13,740, bulls could develop into emboldened to launch an assault on 14,370 after a short interval of consolidation (this degree corresponds to the 61.8% Fibonacci retracement of the 2021/2022 sell-off.

NASDAQ 100 TECHNICAL CHART

Nasdaq 100 Futures Chart Ready Utilizing TradingView