Review and dynamics
After the sharp decline in world stock indices at the end of June caused by Brexit, the index NASDAQ100 has steady grown in July. In August, the rise in the index continues. Today, the price has reached the new highs at the level of 4820.0, exceeding the highs of 2015 by 80 points, or 2%.
On the daily chart, Stochastic has been in the overbought zone since the beginning of July, which confirms that upward trend is likely to continue.
The price is above the key support levels of 4560.0 (the highs of last month) and 4480.0 (ЕМА200 on the daily chart).
Meanwhile, fundamental factors are favourable for the continuation of the uptrend in the American indices, which have already reached the record highs.
It is likely that the rise will continue in the short-term.
Note that traders shall be very careful on Wednesday as minutes of the last FOMC meeting will be released at 21:00 (GMT+3).
If the price goes below the nearest support level of 4739.0 (highs of 2015) it will be advisable to open short positions.
On the daily, weekly and monthly charts the indicators OsMA and Stochastic suggest to open buy positions.
Support levels: 4739.0, 4660.0, 4560.0, 4480.0 and 4395.0.
Resistance levels: 4820.0, 4900.0 and 5000.0.
Sell Stop: 4680.0. Stop Loss: 4760.0. Targets: 4660.0, 4560.0, 4480.0 and 4395.0.
Buy on the market. Stop Loss: 4760.0. Targets: 4900.0, 4950.0 and 5000.0.
Stochastic is in the overbought zone