NASDAQ index back above its 200 day moving average, but overhead resistant target looms | Forexlive

The NASDAQ index is up around 274 points or 2.45% at 110463. The price gapped higher from yesterday’s closing level at 11188.84. The move higher as the index up 4.35% from the low price yesterday.

Technically, the price tumble yesterday so the index fell below its 100 day moving average yesterday at 11148.60 (blue line in the chart above), but recovered back above that key level by the close.

In trading today, the 200 day moving average at 11401.52 has now been rebroken to the upside. The moving average is now a close risk level for buyers and sellers. Move would disappoint the buyers looking for more momentum above the 200 day moving average.

A short 24 hours ago the price action was looking very negative. However, sellers could not sustain momentum, and the sharp rebound has shifted the technical bias back to the upside off the daily chart.

Having said that, drilling down to the hourly chart below, there may be some cause for pause near current levels. Looking at the hourly chart below, the price has moved up to test the falling 100 hour moving average at 11470.09 (blue line). The 38.2% retracement of the move down from the February high cuts across just above that level at 11474.34.

The high price today has reached 11463.38 so far. Sellers may look to lean against that dual technical area as risk can be defined and limited.

Be aware.

So from a technical perspective, there is resistance now at 11474.34 (100 hour moving average and 38.2% retracement). The support would be against the 200 day moving average at 11401.52.