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0 The NDX daily timescale chart gives clear hint to an overbought short term momentum in tech stocks, that with a +2.5% upside would hit the buffers of a Bollinger Band sell signal, with testing once again the all-time high, before investors and traders would evaluate the chances of taking profit, being more cautious, on a short term upside, while the downside risk can be as large as -12%, with a possible pullback on NDX 10800 market area.
The monthly timescale chart of the Nasdaq100 offers a longer term perspective of the overbought uptrend in the 100 Tech stocks benchmark, with the RSI oscillator already in overbought conditions, probably approaching a double top reading in the RSI values.
When retracing a Fibonacci extension from the all-time lows of 2009 financial meltdown, up to the recent all-time high, seems strikingly clear how the Q1 2020 brief correction, saw the NDX drifting down on the 50.00% Fibonacci level, before generating the buy signal, making the Q1 correction, not a particularly straining one, as not related to concerns about the financial stability in the overall financial system. The longer-term chart also gives the material perspective of the wide gap distance between the Nasdaq100 trendline, stretching the Bollinger band buffers to an all-time high, by the underlying technical indicators support, as the median baseline in the Bollinger band, also the Ichimoku Tenkan & Kijun lines, most of all, the Ichimoku Senkou A/B Nuage, a 30.5% gap that could have to be filled to test major support, that would not compromise the NDX uptrend at all, as would not even challenge the 61.80% Fibonacci retracement, although would seem a large correction, would only create solid support to further upside in the longer term.
