Trade of the week: long Nasdaq 100

(AI video summary)

Current trade overview: long US Tech 100

In the current market environment, a trading opportunity has been identified with the US Tech 100 (Nasdaq 100). The strategy involves taking a long position based on recent market movements and the continuation of a well-established uptrend pattern.

The market has responded positively to President Trump's decision to push back his 50% tariff threat on European imports into the United States (US). The implementation date has been delayed from 1 June to 9 July, providing markets with temporary relief and supporting risk appetite.

Trade setup

• Entry point: long the US Tech 100 at current levels or ideally around 21,180 following a minor pullback
• Stop loss: set at 20,675, positioned below Friday's low and the established uptrend line to limit potential losses if the market moves against the position
• Target:aim for an upside target around the 22,000 mark, capitalising on the expected trend continuation

Risk-reward ratio

This trade offers a favourable risk-reward ratio, making it an attractive proposition for those willing to take on the associated risks. However, it is important to note that this is a high-risk trade, and sometimes the best decision is to refrain from trading.

Market context

The US Tech 100 has maintained a long-term uptrend since the 7 April low, demonstrating consistent bullish momentum. Yesterday's relief rally has reinforced this technical pattern, with the index showing renewed strength following the tariff delay announcement.

The technical setup suggests the trend is likely to continue, particularly if the index can maintain its position above key support levels. Traders should monitor for any minor pullbacks that could provide more attractive entry opportunities.

Cautionary note: while this trade presents a structured opportunity, market conditions can change rapidly. Traders are advised to consider their risk tolerance and market outlook before engaging in this trade.