NVIDIA Rally: Is Tech 100 Bullishness Sustainable? Watch the PMI Data Live!

NVIDIA Rally: Is Tech 100 Bullishness Sustainable? Watch the PMI Data Live!

Table of Contents

1. Introduction
2. Tech 100 Analysis
   1. Moving Averages and Bullish Channel
   2. Resistance and Support Levels
   3. Potential Reversal and Bearishness
   4. Daily Chart Analysis
3. DOW Jones Analysis
   1. Moving Averages and Bullishness
   2. Resistance and Support Levels
   3. Reversal Confirmation and Trading Levels
   4. Daily Chart Analysis
4. Conclusion
5. Mentorship and Trading Resources

Introduction

In today's update, we will analyze the Tech 100 and DOW Jones indices using charts and indicators. Tech 100 has been showing strong bullish Momentum, driven by Nvidia earnings, and is currently trading in a bullish channel. However, we need to observe key levels for potential reversals. Additionally, the US services and manufacturing PMI reports are expected to bring volatility. On the other HAND, DOW Jones has been consolidating within a range but is poised for a potential breakout. Let's dive into the analysis to identify potential trading opportunities.

Tech 100 Analysis

Moving Averages and Bullish Channel

Tech 100 has been exhibiting a strong bullish trend, with moving averages crossing over and staying bullish. The price has been forming higher highs and higher lows, indicating a bullish channel. However, it is worth noting that the index has been delivering lower highs and lower lows recently, signaling a potential reversal. As long as the crucial level at 1788-920 is respected, the bullish bias remains intact.

Resistance and Support Levels

The immediate resistance for Tech 100 is seen at 1788-920, which poses a significant challenge for further upward movement. If the index breaks above this resistance zone, we can expect a rally towards 18,000 levels. On the other hand, if Tech 100 breaks below 17800 and 17740-760 levels, we might witness a slight bearishness, with potential support levels around 1776-5060.

Potential Reversal and Bearishness

While Tech 100 is currently staying bullish, there are signs of a potential reversal. The index has been delivering lower highs and lower lows, indicating a divergence in the trend. Traders should remain cautious and monitor the crucial level at 1788-920. Once this level is breached, we can anticipate a sharper drop towards 17,660-650 levels. However, it is important to note that the stock is currently overbought, and indicators like MAGD and RSI also indicate overbought conditions.

Daily Chart Analysis

Looking at the daily chart, Tech 100 shows a retracement towards the 20- and 50-period moving averages, followed by a reversal candle. The formation of a flag pattern suggests that the index is consolidating within a range. To maintain the bullish bias, Tech 100 needs to stay above the support level at 17920. If this level holds, we can expect further upside towards 18,000 and beyond. However, it is crucial to keep in mind the resistance levels and the possibility of a reversal.

DOW Jones Analysis

Moving Averages and Bullishness

DOW Jones has been consolidating within a range, but it is showing signs of potential bullishness. The moving averages indicate a bullish trend, and the price has been forming higher highs and higher lows. However, it is important to confirm the reversal.

Resistance and Support Levels

The immediate resistance for DOW Jones is seen at 38900 levels, and the index needs to break above this resistance to continue its upward movement. On the downside, if DOW Jones trades below 38650 and 38600, we can expect a reversal towards 38550 and 38500 levels. It is crucial to monitor these support and resistance levels for trading decisions.

Reversal Confirmation and Trading Levels

For DOW Jones to confirm the reversal, it needs to trade below 38700-650 levels. Once this level is breached, we can anticipate a sharper reversal towards 38600 and potentially 38500 levels. However, if DOW Jones stays above 38900 levels, we can look forward to further upside towards 3950-39150 levels. Traders should adjust their positions accordingly based on these trading levels.

Daily Chart Analysis

On the daily chart, the Candlestick pattern is relatively flat, indicating a potential reversal. However, with the volatility expected from the US data, we might witness significant swings in the market. DOW Jones needs to overcome the strong resistance at current levels. Traders should exercise caution and consider selling at 38750 levels while keeping an eye on the support levels at 38700, 38660, and 38500. A drop below 38500 will confirm a bearish trend.

Conclusion

Both Tech 100 and DOW Jones have exhibited bullish tendencies, but there are signs of potential reversals in both indices. Traders should closely monitor the crucial levels Mentioned and consider the overbought conditions. It is advisable to be cautious and adjust trading positions accordingly. Remember that market conditions can change rapidly, and it is crucial to stay updated with the latest market developments.

Mentorship and Trading Resources

If you want to enhance your trading skills, I invite you to join my mentorship program commencing on March 4th. Register now to equip yourself with the tools, techniques, strategies, and trade setups that can help you trade profitably. Additionally, you can join my signals channel on Telegram to benefit from live trade signals. Stay updated with the latest market updates by joining the free Telegram channel or visiting my platform, Forex, for live market updates.

Highlights

• Tech 100 shows strong bullish momentum but potential signs of reversal
• Crucial level to watch for Tech 100 is at 1788-920
• DOW Jones consolidating within a range, potential bullishness
• Resistance at 38900 for DOW Jones, support at 38700-38650
• Monitor support and resistance levels for trading decisions

FAQs

Q: What is the current trend in Tech 100? A: Tech 100 is currently in a bullish trend, boosted by Nvidia earnings.

Q: What are the support and resistance levels for DOW Jones? A: The immediate resistance for DOW Jones is at 38900 levels, while support levels are at 38700-38650.

Q: Are there any potential reversals in the indices? A: Both Tech 100 and DOW Jones show signs of potential reversals, and traders should be cautious and monitor crucial levels.