The Nasdaq 100 on the daily timeframe was in an uptrend that continued until a last higher top formed at 13242.2 on 4 April. Bears then saw an opportunity and started testing a weekly support level.
Bulls could not hold their own and bears broke through the weekly support now turned resistance level. The 15 and 34 Simple Moving Averages (SMA) and the Momentum Oscillator changed course to the downside as well, confirming the possible change in market momentum.
A possible critical support level formed when a lower bottom was recorded on 25 April at 12723.6. The bulls might try to drive the price back through the weekly resistance level in a bid to gain supremacy again but that remains to be seen.
If the Nasdaq 100 breaks through the critical support level at 12723.6, three possible price targets can be calculated from there. Attaching the Fibonacci tool to the lower bottom at 12723.6 and dragging it to a lower top that formed on 18 April at 13207.2, the following targets can be determined. The first target may be estimated at 12424.7 (161.8%). The second price target might be expected at 11941.1 (261.8%) and if bears manage to break through a weekly support level, then the third and final target might be estimated at 11158.7 (423.6%).
If the resistance level at 13207.2 is broken, the current scenario is no longer reasonable and must be reassessed.
As long as the bears continue to direct the market, the outlook for the Nasdaq 100 market on the D1 time frame will remain to the downside.
