- US index futures broke lower after Marvell Technology's earnings missed.
- Nasdaq and S&P 500 are now testing key support zones.
- Meanwhile, Amazon, Oracle, Tesla and MicroStrategy – all testing their 200 MA.
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After staging an impressive bounce into the close yesterday, US index futures were trading lower by the mid-morning London session. European indices were all trading in the red, after the early optimism that was driven by Germany’s ambitious spending plans faded, sending the DAX lower after climbing to a fresh all-time high at the start of the European trade.
The sentiment was hit by a disappointing revenue outlook from Marvell Technology (NASDAQ:MRVL), dampening enthusiasm among investors hoping for stronger gains from the AI boom. Broadcom (NASDAQ:AVGO), another chipmaker closely linked to the artificial intelligence surge, dropped ahead of its earnings release.
Let’s see if the dip-buyers will step back in after the open, as we have seen in the last couple of sessions. The Nasdaq and S&P 500 are both testing their respective 200-day moving averages, along with key tech names including Amazon (NASDAQ:AMZN), Oracle (NYSE:ORCL), Tesla (NASDAQ:TSLA) and MicroStrategy (NASDAQ:MSTR). In this article we will run through these names and highlight key levels to watch.
Nasdaq 100 Technical Analysis and Key Levels to Watch
In the last couple of days, we have seen dip-buying in US markets, with the 200-day moving average coming into focus, not just for the Nasdaq, but the S&P 500 too, as well as some individual names like Amazon, Oracle, Tesla and MicroStrategy.
On the daily chart of the Nasdaq 100 futures chart, the 20,000 to 20385 range marks the starting point of the last election-driven rally. It is when the Trump trade rally began in November, making it a rather important technical and psychological area for the market.
Adding to its significance, the 200-day moving average also aligns with this area. Where the index goes from here will be crucial for the near-term outlook. With the daily RSI dipping to near 30, the index is no longer overbought and is approaching slightly oversold levels, at least on the daily and lower time frames anyway.
The Weekly RSI is below 50 and the monthly is now no longer at overbought threshold of 70 and above. Therefore, the Nasdaq is in the buy-the-dip zone for bullish traders. The key question now is whether buyers will step in to halt this short-term bearish reversal.
Should the bulls regain control, we could see a rebound toward at least highs of around 20,700. The 20,700 area now marks the starting point of a key resistance range that extends to 20,985ish. The lower end of this 20,700-20985 range was formerly support on multiple occasions in December, while the upper end was an old all-time high from July 2024.
This range, which has been defended by the bears in the last couple of days, represents the most important and first key resistance zone. A clean move above it would mark a bullish reversal, potentially opening the door for a broader recovery in the coming days.
On the other hand, if selling pressure persists and the index breaks below the abovementioned support zone of 20,000-20,385 area, it could trigger a deeper correction—one we haven’t seen in the past couple of years.
Amazon, Oracle, Tesla and MicroStrategy Also Testing 200 MA
Among the individual stocks testing – and responding – to their respective 200-day moving averages, include Amazon, Oracle, Tesla and MicroStrategy.
Amazon gapped lower on Tuesday only to find strong buying from the key 195 to 200 key support area, where prior resistance and support met the 200 MA. That was a nice bounce, but let’s whether fresh momentum will come into the stock or whether this was just a dead cat bounce. More price action is needed.
Oracle (ORCL) will report earnings on March 10, so this is a stock worth watching closing. Last time it reported earnings in September, it gapped sharply higher and has since held above that gap, where it has established key support around the 155 area. Interestingly, the 200-day average has caught up with price and now comes in around 158 area, making the 155-158 zone a key technical area. So far, the stock has held support here, let’s see if it will continue to do so heading into its earnings release.
MicroStrategy (MSTR) has bounced nicely off its 200 MA, with the support trend of a falling wedge continuation pattern further aiding the bounce within the key 225-240 support area. A potential break above the rising wedge resistance could signal a resumption of the long-term uptrend.
For Tesla, the key area of support to watch is around 260-280, where it had previously found strong resistance in the past, before surging above it when Trump and his buddy Musk came to power. As it happens, the 200-day MA comes in within this key support area. We have seen a bit of a bounce here in the last couple of days, but let’s whether a clear bullish reversal emerges on this, and other stocks mentioned above – and indeed the Nasdaq itself.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.