Trading signal for NASDAQ 100 (#NDX) for October 13 - 14, 2021: Sell below 14,700 (SMA 21 - 3/8)

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The Nasdaq 100 (#NDX) is trading under downward pressure since September 6. It has fallen to the low of 2/8 of Murray around 14,375 on October 4. In almost a month, it has declined by more than 1,320 pips. It is now bouncing from this low and forming a bullish pennant pattern.

Traders of the Nasdaq 100 index are cautious ahead of the publication of the Fed's meeting minutes on Wednesday. Investors will be looking for clues when the US central bank could begin to reduce its massive bond purchase program.

If there are hints at an increase in the interest rates earlier than expected, it could stoke the fear of the market. Investors could quickly take refuge in the US dollar as well as stocks and indices such as the Nasdaq 100.

According to the 4H chart, the Nasdaq is below the 200 EMA located at the psychological level of 15,000. There is no bullish signal. However, a pullback towards 3/8 of Murray located around 14,700 will be a good opportunity to continue selling.

If the Nasdaq breaks through the bullish pennant pattern, it is likely to consolidate above 14,750 and above the 21 SMA with the target at 4/8 of Murray around 15,000. It could test the high of the main bearish channel.

The short-term outlook for the Nasdaq 100 is on the downside as it is below the 200 EMA and the 21 SMA. Any attempt to break these moving averages and fail to do so will be an opportunity to continue selling. The downside target is the 2/8 Murray around 14,375.

The eagle indicator is showing a positive divergence. This may be a sign of the increase in market volume. So, we must expect a sharp break above the SMA of 21 and could initiate an upward movement to 15,000.

Support and Resistance Levels for October 13 - 14, 2021

Resistance (3) 14,919

Resistance (2) 14,850

Resistance (1) 14,721

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Support (1) 14,526

Support (2) 14,457

Support (3) 14,375

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Trading tips for NASDAQ 100 for October 13 - 14, 2021

Sell if pullback 14,700 (SMA 21) with take profit at 14,526 and 14,375 (2/8), stop loss above 14,780.

Buy in case of a breakout at 14,750 (SMA 21 and 3/8) with the take profit at 14,850 and 15,000 (4/8), the stop loss is below 14,680.

The material has been provided by InstaForex Company - www.instaforex.com

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