The NASDAQ100 index ended yesterday’s trading session with moderate gains while other major US stock indexes closed in the red zone amid relatively poor macroeconomic data, disappointing quarterly earnings reports and a fall in oil prices.
On Thursday macroeconomic data showed an increase in the number of jobless claims. Initial claims increased from 247 000 to 260 000 against the forecast of 250 000. Continuing claims came out at 2.057 million while experts projected the indicator to remain unchanged at 2.050 million.
The Philadelphia Fed manufacturing survey index declined from 12.8 to 9.7 in October that was, however, better than the forecast of 5.3 points.
At the same time, it should be noted that data on the US housing sector was positive. After falling by 1.5% in August, existing home sales grew by 3.2% to 5.47 million in September while a gain of only 0.4% was expected.
Support and resistance
Bollinger Bands on the daily chart is moving sideways while the price range remains almost unchanged. MACD is growing and keeping a weak buy signal. Stochastic has approached the border of the overbought zone and is about to turn horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 4836.0, 4822.7, 4815.4, 4802.2 (20 October low), 4783.4 (17 October low), 4758.8 (13 October low), 4747.4 (15 September level).
Resistance levels: 4845.0, 4850.2 (21 October high), 4859.8 (18 October high), 4878.6, 4895.0, 4904.5 (10 October high).
Trading tips
Long positions can be opened after the breakout of the level of 4853.5 (with the appropriate indicators signals) with targets at 4873.6, 4895.0 and stop-loss at 4842.0. Validity – 2-4 days.
Short positions can be opened after the price turns down and fall below the level of 4836.0 with targets at 4818.0, 4797.4 and stop-loss at 4845.0. Validity – 2-3 days.
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