Today’s Chart: US100 (21.12.2022)

Yesterday’s decision by the BoJ to widen the range around the 10-year target yield was hawkish, sending the JPY soaring as equity markets plunged. However, these negative sentiments did not last long, at least not in the US markets, where the Wall Street indices recovered from an early drop and ended yesterday’s session higher.

Looking at the Nasdaq-100 (US100) in the D1 range, we can see an interesting technical development. The index tried to break below the lower limit of a local market geometry yesterday, but the bulls eventually managed to defend the 11,170 pts zone. This means that the short-term uptrend is still in play, and a long wick lower from yesterday’s daily candlestick further strengthens the bulls’ outlook. If the ongoing recovery move continues, the first short-term resistance is to look at the 11,500 pts zone, which served as the lower limit of an earlier broken trading range (11,500 – 12,100 pts).

Source: xStation5

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