US Tech 100 Index Consolidating into a RangePublished On: 7 June 2021, 11:00 AM | Jeraldine Tan, Senior Dealer
- NDX had been on a strong uptrend since Covid-19 with expectations that there will be a regime change wherein tech will bring the next wave of productivity and value.
- In 2021, however, charts show that the market has started to consolidate into a range and is seemingly forming an ascending triangle in recent times.
- This indicates that the upward momentum has diminished where bulls are less optimistic and bears are gaining a foothold – which could mean that a ranging pattern is likely to continue and traders should hence look for next test of the high.
- Bears may look for a failed breakout to short while bulls may go long on follow through momentum after the breakout anticipating that the market will move higher to seek another area of equilibrium.
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