Despite closing with a low of 15036.85 compared the previous day, the Nasdaq 100 Index tested a high of 15210.63 during trading last Friday.
The strong fluctuation came on the back of the US Bureau of Labor Statistics releasing employment data not favourable to the US dollar.
The Nasdaq 100 Index consists of 101 securities listed by 100 of the biggest non-financial companies on the Nasdaq stock market.
According to Forex Factory, the Non-Farm Employment Change reported a growth of 209,000 jobs – 97,000 lower than the previous month – and while Average Hourly Earnings remained unchanged, the Unemployment Rate decreased from 3.7 to 3.6 per cent.
With US employment for June considered weak overall, all pairs with the dollar rebounded early this week, including the Nasdaq 100.
On Monday, it began forming an uptrend, with a closing price of 15045.64, continuing to around 15135 on Tuesday.
PP Link Securities business manager Long Samnang said the trend would move up slightly, but still in a sideways range of 14940 to 15250 in a one-week timeframe.
“As the price is already at the high point of the range, the opportunity for a fall is also high,” Samnang said.
But while the dollar was weak due to the US employment situation, there was also a main fundamental supporting the greenback, he added.
“On July 26, the US Federal Reserve will hold a meeting to discuss the possibility of further raising the rate of interest from the current level of 5.25 per cent.
“The sacrifice of a US interest rate hike remains on the cards to cool off inflation to reach the Fed’s two per cent target,” said Samnang.
Meanwhile, as of July 12, the technical analysis on the price chart for four-hour and one-week timeframes confirmed a strong market-rebound range.
Therefore, investors trading in a weekly timeframe could consider selling on the Nasdaq 100, setting the take-profit and stop-loss functions within the aforementioned sideways range.