Nasdaq index tests critical support


Indices were down again on Thursday, and the Nasdaq 100 index was down 7 out of 8 previous days, something rather unusual.

During the US session, it was seen 0.15% weaker, hovering at around 11,690 USD.

The index dropped to its previous highs/lows area (as shown on the chart), which is the key level for traders. While above it, the medium-term trend still seems long. 

Therefore, the actual dip could be bought at the essential support, an excellent trading strategy. The index could rise toward 11,800 USD and afterward to 12,000 USD.

Alternatively, if the index closes on a daily chart below the support line near 11,600 USD, the trend might switch to bearish, targeting the 11,000 USD level

The sentiment is a bit bearish as there are no breakthroughs in the new fiscal stimulus, while the COVID cases continue to rise vertically in many EU countries. However, after the March global lockdown, tech stocks were the best performers, and the situation might repeat if the world goes into another lockdown.
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