NASDAQ 🟨 As Tech Moons and Jobs Boom, COVID Fears Loom

2 Tem 2020

💬 Tech stocks rallied taking the NASDAQ to new highs, partly on the back of a beat in expectations for a recent jobs report. With that said, while reopenings and jobs data is looking good, the market can't fully ignore the ramp-up of COVID cases in specific areas and the dragging effect this has on sentiment and other sectors.

Despite the overall mixed bag the market is currently dealing with, there is still reason to be bullish on tech. Let's take a look at some levels for the NASDAQ to see what's in store.

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Support:

• S1: The S1 bullish S/R flip is a logical place to find support whether the NASDAQ corrects from here, as shown by the ABC price action on the chart, or the top of the channel is reached first, as shown by the 12345.
  
  
• S2: Although S1 could act as support, the S2 bullish orderblock is arguably more substantial due to past interactions with that level, and thus is a more likely place to find support (especially if it is tested when price is at or near the bottom of the channel).
  
  
• S3: The S3 orderblock, which is currently a the bottom of the channel, is a logical place to find support as well. Finding support here would allow for consolidation, yet would also keep the uptrend fully intact and put in a higher low. This makes S3 a logical bottom for bulls if interacted with while it is still in the channel.
  
  
• S4: The S4 orderblock could act as support, but given the bullish trend of higher lows and higher highs, a retest of the previous low below the longstanding channel isn't exactly what the bulls will want to see.
  
  
  Resistance:
  Having made new highs there isn't a ton of resistance to look at. With that in mind, the previous swing high / All-Time High as highlighted on the chart could act as resistance if price drops below it and the top of the channel is a logical place to find resistance as well.
  
  
  
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  Summary:
  Tech looks bullish AF, unfortunately, the rest of the market doesn't. The NASDAQ should do well, but tech bulls will need to be cautious of upcoming earnings and general weakness in other sectors (as other sectors could drag the NASDAQ down).
  
  You can check out our previous NASDAQ chart below to see how that bullish price prediction played out, logically we expect this one to play out similarly as well.
  
  
  Resources:[/I]
  marketwatch.com/story/dow-jumps-400-points-and-nasdaq-hits-a-fresh-record-thursday-as-jobs-report-for-june-shows-48-million-jobs-created-ahead-of-independence-day-holiday-2020-07-02 + mobile.reuters.com/article/amp/idUSKBN243299
  
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