Technical Analysis Daily ChartUS Tech 100CAPITALCOM:NAS100elisha770Technical Analysis of the Chart - US100 1. Price Structure, Support, and Resistance. * Overall Trend: The market experienced a very aggressive and massive rally starting from April until mid-June. Over the recent weeks (June to July), the price entered a healthy correction or consolidation phase, forming a descending triangle or a bullish flag structure. * Key Resistance Level: Marked by the horizontal blue line at 30,758.3. This represents the current All-Time High (ATH) on this chart. The downward-sloping blue trendline indicates that sellers are putting slight downward pressure on the price in the short term. * Support Levels: * Immediate Support: Marked by the ascending orange trendline converging near the 28,184.7 area. This level represents the recent lows of the current correction. * Strong Historical Support: The 26,255.9 level in orange, which acted as a rigid ceiling in late 2025 and early 2026, was broken with strong momentum in April. This breakout flipped it into a powerful macro support level. 2. Order Block (Not Tested) * Marked by the wide pink rectangle roughly between the 27,500 and 28,000 areas. * This is a zone where a strong market imbalance was created during the aggressive rally in April. The fact that it is Not Tested means that if the market undergoes a deeper correction, this area is highly likely to act as a price magnet and serve as a strong institutional buyer zone, representing a classic long entry point. 3. Moving Averages (EMA 20/50/100/200) * The colored lines below the candlesticks (red, orange, light blue) show that the Exponential Moving Averages are still aligned in a classic bullish sequence, with shorter-term averages positioned above longer-term ones. * The most recent candles are holding exactly on the short-term red EMA line, indicating that the medium-term bullish momentum remains intact and buyers are defending the moving averages. 4. RSI Indicator (Relative Strength Index) * The RSI is currently sitting at 52.31, right in the middle of the scale. * This is a positive sign for bulls. After being deeply overbought above 70 during the May rally, the recent consolidation has successfully cooled off the indicator without a price crash. This healthy reset leaves room and momentum for the next potential leg up. Summary of Market Fundamental Feasibility The US 100 Index (NASDAQ 100) represents the leading mega-cap technology companies. The massive surge seen since April 2026 and the current setup in July 2026 rely on several key fundamental drivers. Bullish Scenario (Continuation and Breakout above 30,758) * The AI Revolution and Earnings Growth: Big Tech companies continue to deliver robust financial reports with stable cash flows, as heavy investments in AI infrastructure, cloud computing, and semiconductors begin to yield tangible bottom-line results. * Monetary Policy: If the Federal Reserve is in the process of cutting interest rates or maintaining a stable, predictable interest rate environment, it eases capital raising for growth companies and incentivizes market upside. * Macroeconomic Stability: Solid employment data and cooling inflation in the US support a soft landing scenario for the economy. Bearish Scenario (Correction towards the Order Block or Support Levels) * Overvaluation: The market rallied too far, too fast, as seen by the nearly vertical angle of the April to May surge. Price-to-earnings (P/E) multiples for many stocks may be stretched, inviting institutional profit-taking. * Inflation or Rate Surprises: If macroeconomic data shows inflation ticking back up, forcing the Fed to hint at higher rates or delaying cuts, the market will likely react with a sharp correction. * Seasonality: The summer months of July and August often experience lower trading volumes and increased volatility. The Bottom Line Both technically and fundamentally, the market is currently in a healthy, waiting posture of consolidation. A breakout above the upper descending trendline could send the price to retest its All-Time High at 30,758. Conversely, a breakdown below the lower ascending trendline could lead to a deeper, healthy correction toward the Order Block around 28,000, where institutional buyers are highly expected to step back in.