Nasdaq 100: Bulls have a weak start to the year – UBS column

Review: The leading technology index Nasdaq 100 was able to compensate for its losses at the beginning of the year, because the index recovered significantly in yesterday’s trading and was able to recapture the 12,800 point mark. The opening took place at 12-663 points and represented the low of the day. With this bullish counter-candle, the extremely bearish first-year candle was almost neutralized again. The bulls shouldn’t rest for long, however, as further price weakness could trigger greater profit-taking. The new all-time high for this index is now 12,945 points.

Outlook: The upward momentum is still manageable. But if the weekly low of 12,537 points is no longer undercut by the end of the week, then the index could still leave the round 13,000 point mark behind in the first week of trading.

The long scenarios: Price gains are still likely above 12,537 points. The bulls are longing for the next round mark at 13,000 points. If this is exceeded sustainably, significant price gains of over 13,500 points would even be conceivable. From the current perspective, however, a direct increase over 14,000 points would be very unlikely.

The short scenarios: a fall back below the 12,500 point mark would be a first signal of weakness. However, to generate a solid sell signal, a daily closing price below 12-250 points would be necessary. Should this signal occur, one should reckon with setbacks well below 12,000 points.

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
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