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FxWirePro: NASDAQ 100 reaches target; partial profit bookings recommended

Back in May this year, in an article named, “FxWirePro: What is next target for NASDAQ100?”, available at http://www.econotimes.com/FxWirePro-What-is-next-target-for-NASDAQ100-673952 we suggested that the US tech index NASDAQ 100 will rise further from the then current price of 5634. Here is a portion of that article,

“The tech heavy benchmark ended the day on Monday 0.7 percent higher with another record closing at 6091.6. Compared to that the US benchmark stock index S&P 500 has failed to break above 2400.98, the high that was reached on the 1st of March. With regard to S&P 500, investors remained concerned about US economic growth, Trump tax plan pass through congress and geopolitical uncertainties. NASDAQ is up 13 percent this year so far.

Similar performance was mirrored in NASDAQ 100. It also had a record closing on Monday at 5634.4 and we suspect that the rally is not going to stop here. According to our calculations, both NASDAQ and NASDAQ 100 have more juice left to move higher by at least 200 points. Since bottoming around 3860, back in February 2016, the index has been not only rising but accelerating the pace of the rise. The chart shows the acceleration.

We at FxWirePro, expects NASDAQ100 to reach 5840 area and then test resistance around 5900 area.”

The index has reached our stipulated target and is currently trading at 5912. While the index is expected to move higher, we would like to recommend partial profit bookings on the trade in the tune of 30-40 percent as a correction might be around the corner.

Tech earnings have so far beaten estimates in the second quarter. 100 percent of the companies reporting results so far have beaten both revenue and EPS estimates.

 

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