Nasdaq Breaks Key Resistance As Risk-On Sentiment

Fundamental Analysis

* Risk-on Appetite Boosts Equity Market: The U.S. equity markets have sustained their upward trajectory, propelled by a prevailing risk-on sentiment. This optimism is underpinned by robust global investor confidence, bolstered by positive expectations surrounding trade relations, particularly with China and other major economies. All eyes are on President Xi Jinping’s diplomatic visit to Europe, with market participants eagerly anticipating potential synergies that could catalyze the global economic landscape.

Technical Analysis

* Technical Breakout: The Nasdaq has achieved a significant breakthrough above a crucial resistance level, signaling a strengthening bullish trend. Technical indicators further support this outlook, with the MACD illustrating increasing bullish momentum and the RSI hovering at 63, suggesting room for further gains as long as it remains above the midline.

* Resistance and Targets: If bullish momentum persists, attention is drawn to the first resistance level at 18430.00, contingent upon the index maintaining closure above the support level. Conversely, failure to sustain this momentum would prompt a reevaluation of trading strategies, with a short-term support level identified at 17850.00.

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Potential Risks

Despite a relatively quiet week for market events, traders are advised to remain vigilant. Continued monitoring of Federal Reserve discussions and ceasefire negotiations in the Middle East is crucial. Any hawkish statements from the Fed or uncertainties surrounding the ceasefire deal could potentially dampen the appeal of the equity market.

Know how to manage trading risks with risk management strategies.

Monitoring

To stay informed, it’s essential to keep track of upcoming U.S. economic data releases and quarterly financial earnings report. For additional insights into market trends, can follow PU Prime’s market insights and daily financial news.

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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.