What technical trends are US tech stocks showing?


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The technical trends for US tech stocks are currently showing signs of easing upward momentum and potential consolidation:
- Nasdaq 100 Index Trends: The Nasdaq 100 Index has been experiencing a rise, but recent indicators suggest easing upward momentum. Key levels to watch include 19,500, 18,900, and 18,400, which could act as support levels. A potential price target is around 22,0001.
- Stock Performance and Volume: While the Nasdaq 100 has risen nearly 8% in the second quarter, trading volume has declined, indicating reduced buying pressure. This divergence between price and volume suggests a potential slowdown in the tech sector's upward trend2.
- Resistance Levels: The index faces resistance at the 19,500 level, which was a previous high point. Breaking through this barrier could lead to a positive rally, but sustained growth will depend on overcoming 20,000-level resistance1.
- Moving Averages: The 50-day and 200-day moving averages have been important support levels. The index has traded above these averages, but a recent pullback tests the 50-day MA, which could be a point of interest for buyers1.
- Relative Strength Index (RSI): The RSI has shown a bearish divergence, indicating that the price may be losing upward momentum. An RSI below 30 could suggest an oversold condition, potentially leading to a rebound1.
In conclusion, US tech stocks are showing signs of easing upward momentum and potential consolidation. While there is still a positive outlook for the sector, the recent slowdown in momentum and the need to overcome resistance levels suggest a cautious approach for investors.
Source:
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Watch These Key Nasdaq 100 Levels As Chart Signals Easing Upward Momentum
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