Source: PaxForex Premium Analytics Portal, Technical Insight

The U.S. stock indices Dow Jones and S&P 500 declined in trading on Monday, losing the gains of the early session amid concerns about the introduction of additional restrictive measures in connection with the coronavirus pandemic. At the same time the rise in shares of major technology companies supported the Nasdaq Composite index. All three indices opened the trades on the rise due to the hopes for the soon widespread use of vaccines from COVID-19 and the adoption of new measures to support the U.S. economy. The Nasdaq Composite added 62.17 points (0.5%) to settle at 12440.04.

Nasdaq 100, H4

Pivot: 12466.00

Analysis:

Provided that the index is traded below 12540.00, follow the recommendations below:

• Time frame: H4
• Recommendation: short position
• Entry point: 12466.00
• Take Profit 1: 12375.00
• Take Profit 2: 12240.00

Alternative scenario: 

In case of breakout of the level 12540.00, follow the recommendations below:

• Time frame: H4
• Recommendation: long position
• Entry point: 12540.00
• Take Profit 1: 12650.00
• Take Profit 2: 12770.00

Comment:

RSI indicates a downtrend during the day.

Key levels:

Nasdaq 100, D1

Pivot: 12356.00

Analysis:

While the price is above 11820.00, follow the recommendations below:

• Time frame: D1
• Recommendation: long position
• Entry point: 12356.00
• Take Profit 1: 13100.00
• Take Profit 2: 13800.00

Alternative scenario:

If the level 11820.00 is broken-down, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 11820.00
• Take Profit 1: 11500.00
• Take Profit 2: 10960.00

Comment:

RSI is bullish and indicates further increase.

Key levels: