Wall Street finished mixed on Tuesday, with the Nasdaq (US100) closing lower for a second straight session, as rising U.S. Treasury yields pushed investors to value stocks. The rise in bond yields was fueled by the re-nomination of Fed Chairman Jerome Powell. The 10-year yield rose 4 bps to 1.67% (+13 bps in two days) and the 2-year yield also rose 4 bps to 0.61%.
Is it the right moment for a rebound of the Nasdaq (US100) ? Did we reach the dip ?
D1 interval :
The 9.50% rise that followed the exit of the cloud by the prices ended in contact with a major resistance: the 161.8% retracement based on the previous decline that ended in early October. Since then, prices have lost significant ground and are slightly above the Kijun (blue line) at 16,000 pts. If this level is broken, the decline could deepen to 15,700 pts, a level that coincides with the early September highs. On the other hand, if the bulls take back control of the market and push prices above the Tenkan (red line) at 16,400 pts, the door would be open for new ATH.
US100, D1 interval, Source : xStation5
H4 interval :
Looking at the H4 chart, prices have rebounded very precisely on the Ichimoku cloud, indicating that the outlook remains bullish. This rebound has resulted in the formation of a C-point and according to Goichi Hosoda's price projection, if the rise continues, it could extend to 17,400 pts.On the other hand, if prices fall below the cloud, a further decline will be the basic scenario. In this case, the 200-period moving average will be the first support that prices will find.
US100, H4 interval, Source : xStation5
Reda Aboutika, XTB France
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