Nasdaq 100 slingshot rally in the making?US Tech 100 CFDFOREXCOM:NAS100FOREXcomThere's a slingshot feel developing in our Nasdaq 100 contract, particularly given where the latest rebound began. The bounce from 26,258 came off an important technical level that capped the price for lengthy periods in late 2025 and earlier this year. Having held as support during last week's violent sell-off, the price now looks to be gathering momentum for a potential squeeze above the 200-day moving average. That's the immediate level to watch overhead, sitting around 28,088. Prior to last week's breakdown, the moving average had been tested and held on multiple occasions, potentially explaining the hesitation as the price approaches it from below. But with Anthropic progressing towards a stock market listing and CoreWeave delivering stronger-than-expected quarterly revenue, there's a sense that enthusiasm towards the AI trade may be starting to percolate again. For now, this remains a countertrend rally, but the momentum indicators are starting to look more encouraging. RSI (14) has been setting higher highs, while MACD is converging towards its signal line, albeit in negative territory. Together, they suggest directional risks are becoming more balanced after the aggressive selling seen recently. A break above the 200-day moving average that sticks, preferably followed by a backtest and bounce, would present an appealing entry point for longs, allowing for a tight stop to be placed beneath the moving average for protection. The initial target would be 28,875, a former support level that held on multiple occasions before the breakdown in late October. Beyond there, the downtrend running from the record highs and the confluence of the 50 and 100-day moving averages would come into focus. Of course, if the price fails to break and hold above the 200-day moving average, the immediate bullish bias would be invalidated. Good luck! DS