NAS100 is an index that is mainly based on top 100 best performing USA stocks. This index includes a lot companies besides those from the financial industry like the banks, they could be either from commercial or investment banks. The non-financial sectors could from retail, health care, technology, industrial and others. NAS100 is a priced based index so in most cases it reacts more around whole numbers in price, like 13500.00 or 13000.00 and so on. It is common sense to say that if something is based on best performing stocks it will always likely to gain strength most of the times.
Monthly Chart
This chart is at its all time high, according to this monthly chart and I think it is safe to say that it is still more bullish in this chart. The previous months candlestick closed very bullish with no wick on top and that was the sign for momentum, but the current month candle is slowly moving with lesser body than the previous, does that mean are they slowly losing momentum？ Let us check lower timeframe charts for more details.
Weekly Chart
The previous weeks candle is a bearish engulfing candle around 16400.00 price mark this could be a sell signal but we need a break of structure or break of support levels in lower timeframes. That 16400.00 mark was tested in this scenario because we do not have another bullish candle that closed above the 16400.00 price mark.
Daily Chart
Daily chart did not really break any support levels, but it only maintained 1600.00 price mark, with a confluence of exhaustion zone. The previous HH (Higher High) was broken around 16458.1 seeing those two bullish candles closing above 16458.1 reaching the all-time high at 16780.5 price mark. The current daily is very bullish and seemingly it might close as a bullish engulfing candle, but nothing is confirmed at the moment because it is not a good trading practice to make decision based on active candles.
Four-Hour Chart
This timeframe is showing a lot of bullish movements. The price made a fake support level where there is a symbol (X), the price took out traders who based their orders from that support level which also that candle that tested the black horizontal line was the one that tested the support (black horizontal line) and the exhaustion zone where there is a yellow eclipse. The counter trend line was broken after that yellow eclipse has been tested at the exhaustion zone. If the price breaks the current level of resistance, that would confirm that the bullish trend is imminent. If that current resistance holds you can short this pair. If the price retest 16209.8, that is where I would like to take the buys on this index.
NAS100 is one of most exotic indices you can trade, with that being mentioned you are advised to use proper risk management, when trading this pair and also you may get a lot of risk management advices including brokers on this WikiFX app.
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