(MENAFN- Daily Forex) Potential signal:

• I am willing to buy NASDAQ 100 at the close.
• I would have a stop loss of 100 points, with a target of 26,500 above.

I discuss the NASDAQ 100's recent pullback and see it as a healthy retest of prior resistance turned into support. With strong buyers below, I expect a potential bounce toward 26,500 and possibly 27,000 as tech leaders remain firm.

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The NASDAQ 100 initially tried to rally during the trading session on Friday, but it has fallen yet again. That being said, I don't really worry about this too much because we are testing the top of the channel that we had broken out of. Quite often, you'll see one of these breakouts of a channel come back to test that area to make the previous resistance show some type of support.

All things being equal, this is a market that has plenty of buyers underneath, I believe, all the way down to at least the 25,000 level. With that in mind, I'm looking for a buying opportunity-perhaps a little bit of a pullback and a bounce. Getting on the right-hand side of the V pattern, if you will, is the way I tend to play these markets when they are breaking to the upside and give us a little opportunity to pick up some value.

To the upside, I see the 26,500 level as a barrier, and breaking above there opens up the possibility of a move to 27,000. Again, I believe the 25,000 level is a large, round, psychologically significant figure that will continue to offer support. I like the idea of buying in that area if I somehow get that opportunity, but I don't think I will.

EURUSD Chart by TradingView

Keep in mind that the NASDAQ 100 is driven by about seven to ten stocks, so pay attention to all the usual suspects. It's not an index of 100 stocks-it's an index of Nvidia, Tesla, and a handful of others. So, with that, you've got to remain bullish as long as they're bullish. Right now, they look okay. Ultimately, I think this is a market that finds its way higher; we just may have a little bit of a pullback in order to attract value hunters back into the NASDAQ 100.

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