🌐Macro Background
US technology stocks are poised to rebound after a sharp drop driven by AI valuation concerns, with nearly $1.3 trillion lost from Nasdaq-100 stocks. The Philadelphia Semiconductor Index fell 7.9%, and the Nasdaq 100 declined 3.3%.
Volatility also impacted Asia, particularly South Korean stocks, influenced by global chipmaker earnings. Micron Technology's upcoming earnings will help determine whether tech indices stabilize or face further declines.
📊Technical Structure
The US100 is trading within an ascending channel, stabilizing at its midpoint after the recent decline. The channel shows clear support and resistance.
Resistance Zone (30,085 – 30,388): This area marks a historical supply block. Reclaiming this zone is key for bulls.
Support Zone (28,862 – 29,143): This is the structural floor. As long as it holds, the broader trend remains intact.
🎯Trade Setup
A potential long setup exists if the channel’s support holds ahead of a key earnings catalyst.
Entry: Go long on pullbacks to support around 29,143 or on a breakout above 29,600, especially if Micron’s earnings spark a rebound.
📌Invalidation
The bullish scenario is negated if the US100 closes below 28,862, breaching the defined channel base and invalidating current support.
📌Trade Summary
US100 may see a relief rally after the tech sell-off. The focus is on buying near support within the channel.
⚠️Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.
US technology stocks are poised to rebound after a sharp drop driven by AI valuation concerns, with nearly $1.3 trillion lost from Nasdaq-100 stocks. The Philadelphia Semiconductor Index fell 7.9%, and the Nasdaq 100 declined 3.3%.
Volatility also impacted Asia, particularly South Korean stocks, influenced by global chipmaker earnings. Micron Technology's upcoming earnings will help determine whether tech indices stabilize or face further declines.
📊Technical Structure
The US100 is trading within an ascending channel, stabilizing at its midpoint after the recent decline. The channel shows clear support and resistance.
Resistance Zone (30,085 – 30,388): This area marks a historical supply block. Reclaiming this zone is key for bulls.
Support Zone (28,862 – 29,143): This is the structural floor. As long as it holds, the broader trend remains intact.
🎯Trade Setup
A potential long setup exists if the channel’s support holds ahead of a key earnings catalyst.
Entry: Go long on pullbacks to support around 29,143 or on a breakout above 29,600, especially if Micron’s earnings spark a rebound.
📌Invalidation
The bullish scenario is negated if the US100 closes below 28,862, breaching the defined channel base and invalidating current support.
📌Trade Summary
US100 may see a relief rally after the tech sell-off. The focus is on buying near support within the channel.
⚠️Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.
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Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
ATFX is a globally regulated, award-winning fintech broker offering customer support in 20 languages.
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
👉🏼Start your trading journey with ATFX: bit.ly/3mLMPHz
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.