NASDAQ Price Analysis – April 25, 2023
Daily Price Outlook
The Nasdaq 100 Index (NDX) has fallen by 0.24% to reach 12,969. The decline in the Nasdaq index can be attributed to pressure from significant mega-cap companies, with investors awaiting reports from companies such as Microsoft. Additionally, Tesla's shares fell due to concerns about its spending plans.
Tesla pushes Nasdaq lower
On Monday, Tesla (TSLA), the world's largest producer of electric vehicles, announced in a filing that it has increased its capital expenditure expectation from $6 billion to between $7 billion and $9 billion as it ramps up production at its factories.
The company has been aggressively increasing production to meet CEO Elon Musk's target of selling 20 million electric vehicles by 2030, putting sales growth ahead of profit in a sluggish economy.
As a result of the announcement, Tesla Inc. saw a 1.5% decline in its share value, and the Nasdaq Index also suffered losses due to the pressure on Tesla's shares.
Corporate Earnings Drive NASDAQ Lower
This week, which will mark the halfway point of earnings season, Wall Street is anticipating the results of the mega-cap technology companies. Alphabet, Microsoft, Amazon, and Meta are a few of the well-known companies expected to release their first-quarter results.
Microsoft (MSFT) shares, which have increased by more than 17% this year, were under pressure on Monday as investors were concerned about the company's upcoming earnings report on Tuesday. MSFT is down 1.40% at $282.
Additionally, despite an increase in Daily Active Users, Meta's Q1 profitability is expected to drop for the sixth straight quarter due to dull advertising income and increased expenditures. The Nasdaq 100 is moving down ahead of key results from Meta and other "Big Tech" behemoths.
Daily Technical Levels
Support Resistance
12924 13054
12847 13108
12793 13185
Pivot Point: 12977
NASDAQ – Technical Outlook
The current trend for the NASDAQ index is bearish, with the $12,950 mark as a key level. The index may find immediate support near the $12,900 level, which is reinforced by a double bottom pattern. However, this level has already been breached.
On the upside, resistance is expected around the $12,998.2 level, and breaking above this level could potentially push the NASDAQ price toward $13,101.8.
Conversely, if the index breaks below the $12,962.6 level, it could experience further declines toward the $12,700 or $12,400 levels.
Key technical indicators, such as RSI and MACD, are now entering the sell zone, reinforcing the selling momentum. Thus, monitoring the $12998.2 level is critical, as it could trigger an extended period of selling for the NASDAQ index.
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