Since the beginning of the year, the US technological index gained more than 10.5% although last week rose more than 1.0% and in a bullish phase since early May.
Last week the US index initially fell but found enough buying pressure near a key level to erase all of its losses and managed to close near the high of the week, in addition closed above the previous week high, which suggests a strong bullish momentum.
The stochastic is showing a strong bullish momentum and is above the 50 mid line.
Since the bounce from second trend-line in early April the NASDAQ 100 began a bullish rally that is now approaching year-to-date high at 7,214.0. However, the stochastic seems that is not keeping up with the price action, signs of weakness to the upside.
Expecting an upward move to 2018 high at 7,214.00 on a break above the previous week high at 7,090.25 (scenario 1) however a bounce from 2018 high at 7,214.00 may trigger some profit taking down to the key level at 6,849.00 (scenario 2).