Technical analysis update: Nasdaq 100 (25th January 2022)

Nasdaq 100 hit all our price targets as it dropped to 13 706 USD yesterday. At the moment we are unsure whether market selloff will continue. Because of that we decided not to set a new price target for NQ1!. Instead, we would like to wait for the FED statement tomorrow and then we will reassess the situation. It is possible that the FED might backtrack on its recent hawkish narrative in regards to economic tightening. This might temporarily halt market selloff (or even entirely). We will update our thoughts on NQ1! after the FED provides more information on its future monetary steps.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+ and DM- are bearish. ADX continues to increase which suggests that the prevailing trend is strong. Price deviated too far from its 10-day SMA which suggests that it might be ready for retracement. Overall, the daily time frame remains bearish, however, with some indicators signaling oversold condition in the short-term.

Technical analysis - weekly time frame
RSI, MACD and Stochastic are bearish. Same applies to DM+ and DM-. Overall, the weekly time frame is bearish.

Please feel free to express your own ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.