US Nasdaq (NAS 100) Analysis – Pre-Inflation Data and Expected Scenario?

On the economic agenda today is the release of inflation data, with the Consumer Price Index (CPI) set to be released as follows:

• CPI (month-on-month) (November) – 0.3% expected
• Core CPI (month-on-month) (November) – 0.3% expected
• CPI (YoY) (November) – 3.1% expected

From a technical perspective on this indicator, it is evident from the daily chart that the sideways movement continues below the 26289.14 level, which is the highest level reached and can be considered a resistance level or the upper limit of the sideways range. As for the lower limit or support of this range, the 23986.79 level can be considered as it is currently trading above this level. This refers to the state of uncertainty that prevails in the market and the balance that exists between the forces of supply and demand due to the state of uncertainty that still exists.

The indicators make the same point, we see positive and negative crossovers between the price and the 20-day and 50-day moving averages, we also see the RSI curve fluctuating around the 50 level, and the curve moves sideways with no clear direction in sight.

Based on these moves so far, here’s what could happen in the upcoming trade:

• Positive scenario:
  A breakout and hold above 26289.14 could signal a shift in purchasing control on the demand side and we could see further gains targeting new record levels above this level.
• Casual scene:
  The extension of the sideways trend, with the current horizontal range stabilizing below 26289.14 and above 23986.79, expresses the uncertainty and continuation of the balance between supply and demand forces.
• Negative scenario:
  Continuing the decline, a breakout and hold of the 23986.79 level may indicate supply-side selling control and we may see lower targets of 22997 and perhaps 22675.39.

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