The Nasdaq 100 is approaching key short-term resistance at 12,000 points
In terms of technical analysis, the rebound of the Nasdaq 100 since Tuesday allows it to return to test a major bearish oblique line passing through the main highs since the beginning of April.
A crossing of this slant would be a first technical signal in favor of a market rebound, but it will be better to wait for an exit from the top of the Bollinger bands to confirm this scenario.
If so, a bounce back to the early June high at around 13,000 points would be on the cards. A stronger rebound, up to the 200-session moving average, seems possible, but reassuring news on the inflation and growth fronts will probably be necessary.
In the meantime, the outlook remains bearish in the short term. A pullback below the recent low at around 11,000 points would strengthen the bearish outlook and pave the way for further declines to 10,000 points in the near term.
Entrance: Purchase above 12,000 points
Stop: 11,500 points
Objective: 13,000 points
Risk/reward ratio: 2
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