Nasdaq and SP500 index trade setups ahead of NVIDIA results
Traders are reminded that US Indices can now be traded in rands from a local account
Traders are reminded that US Indices can now be traded in rands from a local account
Traders will also want to watch out for NVIDIA (a major US Tech and S&P component) results out tomorrow
A preview of the NVIDIA results can be found here
US 500 (S&P500)
The US 500 is currently testing support at the 5850 level. Traders will be looking to see how the price handles this level.
A close below would suggest a deeper correction with 5665 the next support target considered.
Should the level instead hold, and we can see strong close higher, a bullish price reversal at support would be considered.
The long-term trend for the US 500 remains up, this suggests that trend followers would still be looking to keep a long bias to trades on the index in either scenario.
In the deeper correction scenario, traders might prefer to wait for weakness to play out, looking for a bullish reversal at one of the lower labelled support levels for long entry.
In the bullish reversal off the 5850-support level scenario, traders might look for long entry targeting the recent high and overhead resistance at around 6200, while using a close below the reversal low as a stop loss consideration.
US Tech 100 (Nasdaq100)
Similarly to the US 500 index, the long-term trend for the US Tech 100 is up, suggesting that trend followers would look to keep a long bias to trades on the index.
Traders might look for a rebound off the 20330-support level for long entry, targeting a move to the high at 21220 as an initial target. In this scenario, a close below the 20330 level might be used as a stop loss consideration.
Should the price not rebound off the 20330 level, and instead close below this level, 19850 becomes the initial support target from the move. In this scenario, traders might prefer to wait weakness out looking for a bullish price reversal close to the 19850 level for long entry. Should this setup manifest, we will update guidance accordingly with targets and failure levels.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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. See full non-independent research disclaimer and quarterly summary.
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