Nasdaq 100: New all-time high – UBS column

Review: The Nasdaq 100 index has been on an upward trend for years and is being driven further upwards by the enormous flood of liquidity and financial aid in the coronavirus crisis. The day before, the index reached a new all-time high of 12,925 points. The index is largely above the 50’s EMA, which indicates the strength of the Nasdaq 100. Downward corrections usually end a little below the 50 EMA, whereby a renewed price increase above the 50 EMA is often a signal for a new upward movement. In addition, the daily chart shows that the 50 EMA has been above the 200 EMA since spring 2019, which is also a beefy long-term signal and underlines the strength of the Nasdaq 100.

Outlook: The upward trend is clearly intact in the Nasdaq 100 and the new all-time high from the previous day shows that the bulls have the scepter in their hands.

The long scenarios: The Nasdaq 100 can maintain the upward momentum of the previous days and continue to increase. The bulls’ next target price would then be in the area of ​​the round mark of 13,000 points. The focus is on the 10 EMA in the daily chart. As long as the index is trading above the 10-EMA, further rising prices can be expected. Downward corrections usually taper off slightly below the 10 EMA.

The short scenarios: The Nasdaq 100 slides sustainably below the 10 EMA and takes on downward momentum. The support zone is broken down at 12,400 points. The next stop for the bears would then be the 50 EMA, currently in the range of 12,206 points. Deeper corrections should end a little below the 50 EMA in the daily chart at the latest. However, if there is another price slide here, a return to the 200 EMA in the daily chart at 10,900 points would be expected.

Livestream on December 14th, 2020 from 6 p.m .:

With Hans-Werner Sinn, former President of the Ifo Institute.

With Hans-Werner Sinn, former President of the Ifo Institute: Corona and the miraculous increase in money in Europe
– Here is the stream! –


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