NASDAQ100 A Sell As Investors Turning Defensive

Early on Monday (20/6), the NASDAQ100 Index rose strongly after three of the six opinion polls published during the weekend reported results favouring Britain continuing within the EU. However, these polls were all pretty close and they could still swing the other way before the referendum. Consequently, late yesterday, investors seemed to  be turning  back towards defensive choices in their stock selection, which led to a reversal in the NASDAQ100 index late in the session. The market is awaiting results from Thursday’s referendum and tuning into FED Chair Janet Yellen’s clues on the timing of the next rate hike in her 2 day testimony on Capitol Hill, that begins today. On the hourly chart, RSI (14) is  down to the level of 43.2157, indicating that bears have an edge currently. The stochastic chart indicates that the price is about to approach oversold territory. Nevertheless, the %D line (red line) has not turned up, signaling that the buying force has not come in yet. The index is anticipated to slump further.

Trade suggestion

Sell stop at 4396.25, Take profit at 4385.47, Stop loss at 4406.76


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