Article details
The NASDAQ index has struggled to break above the 200-hour moving average, which coincides with a downward-sloping trendline defining the upper boundary of a trading channel. After failing to push higher, the index retreated toward the 100-hour moving average at 22,697.33, closing just above it. However, a sharp gap lower occurred on Thursday due to rising oil prices and escalating Middle East conflict tensions, sending the index down roughly 400 points (-1.76%). Traders now focus on key support levels at 22,256.76, 22,125, and 22,061, with a potential test of the channel's lower boundary near 21,968 if selling pressure persists. This bearish technical setup is compounded by fundamental pressures. Higher oil prices from the Strait of Hormuz closure and rising U.S. interest rates (e.g., 10-year Treasury yields) are weighing on risk assets. For traders, the breakdown below key support levels could trigger further declines toward 21,898 (November 21 low) and eventually the 38.2% retracement level at 20,491.86, representing a 14.5% drop from the 2026 high. The broader market sentiment remains fragile, with geopolitical risks and monetary policy tightening amplifying volatility. MENA investors should monitor oil price movements and U.S. rate decisions, as these factors directly impact regional equity markets and capital flows. The Nasdaq's continued weakness may also affect Gulf investors with exposure to U.S. tech stocks. Key technical levels to watch in the coming sessions include 22,256.76 and 21,968, with a potential 14.5% retracement target at 20,491.86 if the bearish trend accelerates.
