Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print
Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print

Account
New to ADSS? Open an
account now to get started.
Open an account Login

Asset Watch

How should you play the NASDAQ 100’s moment of truth?

 

Tuesday, January 24, 2023

As recession fears spread and volatility is amplified, the anxiety has led traders to price in a lower peak U.S. federal funds rate (FFR). However, on Jan. 19, JPMorgan CEO Jamie Dimon said, “I actually think rates are probably going to go higher than 5%… because I think there’s a lot of underlying inflation, which won’t go away so quick.”
He added:
“We’ve had the benefit of China slowing down, the benefit of oil prices dropping a little bit. I think oil & gas prices probably go up the next 10 years… [China’s reopening] isn’t going to be deflationary.”
While the NASDAQ 100 benefits from lower interest rates, a major move in either direction could be on the horizon.

With the index sandwiched between weekly support and resistance, there isn’t much wiggle room in either direction. On the one hand, it closed above the 20-week moving average on Jan. 20, and the MA has largely marked support and resistance since May 2020 (outside of the bear market rally in August 2022).

On the other hand, the grey arrows show how overshoots of the 20-week MA have ended at the declining resistance line. And with the next milestone at roughly 11,800, the potential upside is limited.

As a result, with 20-week MA support near 11,400 and trendline resistance near 11,800, the Jan. 20 close of 11,619 signals that a breakout or breakdown could happen within days.

So, which is more likely?


Site by Pink Green
© ADSS 2023


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.