Nasdaq 100 Reaches Record High

On 29th October, analysing the Nasdaq 100 (US Tech 100 mini on FXOpen) chart, we:
→ Drew a blue upward channel relevant for 2024.
→ Noted that the price was in a consolidation phase (indicated by narrowing purple lines) at the channel's median, suggesting a potential balance of supply and demand forces.
→ Warned that earnings season could trigger a volatility spike.
→ Suggested that the price was likely heading toward a new all-time high.

Since then:
→ Amid company earnings reports, we observed a volatility spike in November, which was further amplified by the release of US presidential election results.
→ The index achieved a new all-time high.

The Nasdaq 100 (US Tech 100 mini on FXOpen) chart shows that the index surpassed the $22,000 level for the first time yesterday. This was supported by positive trader sentiment ahead of tomorrow's Fed interest rate decision. According to Forex Factory, the rate will be cut by another 25 basis points (returning to the February 2023 level).

Meanwhile, the technical analysis of the Nasdaq 100 (US Tech 100 mini on FXOpen) reveals that:

→ The price has approached the upper boundary of the upward channel, which could serve as strong resistance.

→ Since early December, the index has risen by approximately 5.5%, and the RSI indicator has entered the overbought zone for the first time since July.

Under such conditions, bulls may struggle to continue the upward momentum, as more investors might look to lock in profits ahead of the holiday season. Additionally, the market's reaction to tomorrow's Fed interest rate release at 21:00 GMT+2 may play a key role.

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