Nasdaq 100 to tick down towards 13190/12950 on a break below 13720 – SocGen

Nasdaq 100 is probing the low of last month at 13720. A drop below here would open up further losses towards 13450 and last May low of 13190/12950, economists at Société Générale report.

Decline could persist on failure to cross 14650

“Daily MACD is at a higher level as compared to recent trough which is first signal of positive divergence however it is firmly anchored within negative territory.”

“An initial bounce can’t be ruled out; steeper channel limit at 14650 is expected to be first layer of resistance. Failure to cross this would mean the decline could persist.”

“Below 13720, next potential support levels are located at projections of 13450 and last May low of 13190/12950.”