Nasdaq Nears Key Psychological Level

Fundamental Analysis

* Dropping Yields Support Equity: The US equity market remains resilient, with several analysts offering positive forecasts for its outlook. Bank of America analysts suggest that US equities are well-positioned to continue their upward trajectory, provided that economic growth remains stable. The potential for rate cuts from the Fed, coupled with stabilized and slowing inflation, continues to support the equity market. Additionally, the growth of artificial intelligence (AI) remains strong, driving further bullish momentum, particularly in the tech-heavy sectors.

Technical Analysis

* Technical Breakout: Nasdaq has successfully broken out above a strong previous resistance level and continues to extend its gains. The index is now near the new psychological level of 20,000. A successful breakout above this level would suggest that the index might continue its upward momentum, potentially forming a double top and reaching another resistance level at 20,705.00.

* Resistance and Support: nvestors should monitor the current resistance level at 20,000. A successful break above this level could indicate further upward movement for the Nasdaq. Conversely, if the index fails to break out, a technical correction might occur, with a possible short-term pullback to the support level at 19,035.65.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

* Rising geopolitical tensions could weigh on the appeal of the equity market.

Know how to manage trading risks with risk management strategies.

Monitoring

Keep a close watch on developments in the Middle East and overall US economy performance to gauge the likelihood movement for the index, by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.

Step into the world of trading with confidence today. Open a free PU Prime live CFD trading account now to experience real-time market action, or refine your strategies risk-free with our demo account.

Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.