Trade of the week: long NASDAQ 100
After a dismal first week of the year, the NASDAQ 100 found support and we expect it to at least short-term to bounce off it.
We would thus like to go long the NASDAQ 100 with a stop loss placed 200 points below the entry level, around 16,272 on a daily chart closing basis - not just intraday - and an upside target at 16,772.
(AI Video Summary)
NASDAQ 100's rough start to the year
Today's "Trade of the week" starts off by discussing the recommended trade for the week of 8 January 2024, regarding the NASDAQ 100 stock index. The host, Axel Rudolph, mentions that the index had a rough start to the year, dropping about 3.5%. However, he points out that it found support just above the highs from late November. This leads him to believe that the NASDAQ 100 could experience a short-term recovery.
Today's trade: long the NASDAQ 100
To take advantage of this potential recovery, he suggests going long on the NASDAQ 100 index. He explains that going long means buying the index with the expectation that its value will increase. He also recommends setting a tight stop with a tight stop placed around 16,072, which means setting a specific threshold at which he will sell his position if the trade starts to go against him. The stop is based on the closing price at the end of each trading day, rather than the fluctuations that occur during the day. He also mentions a potential profit target of around 16,772, indicating a possible level at which one might consider selling to take their profits. This way, he can limit his losses.
In terms of timing, he suggests that now is a good time to enter the trade, as he believes the upward trend observed since October will continue in the short term. He acknowledge that the first week of January didn't go well for the NASDAQ 100, but he remains optimistic about its performance moving forward.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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