Nasdaq Composite May Climb 12%, Natixis Says: Technical Analysis
January 25, 2012, 11:27 AM ESTBy Adria Cimino
Jan. 25 (Bloomberg) -- The Nasdaq Composite Index may gain as much as 12 percent if it breaches the high reached in May last year, according to a technical strategist at Natixis.
“If we break that level, it’s a pretty strong signal,” Ouri Mimran, a technical strategist at Natixis in Paris, said in a telephone interview today. “U.S. stocks have strong momentum and that has been helped by recent economic data. We’re positive on the U.S.”
The Nasdaq Composite climbed 0.1 percent to 2,786.64 yesterday. If the gauge rises through the resistance at 2,887.75, the intraday high reached on May 2, it is likely to keep advancing until reaching 3,120, Mimran said. That level represents a 50 percent retracement of the index’s decline from 2000 to 2002, according to the strategist.
The measure plunged 78 percent from the March 2000 intraday high of 5,132.52 to the low of 1,108.49 in October 2002, data compiled by Bloomberg show.
Futures on the Nasdaq-100 Index rallied 0.8 percent at 8:45 a.m. in New York today after Apple Inc., the world’s biggest technology company, reported earnings that beat analysts’ estimates.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
--Editors: Andrew Rummer, Will Hadfield
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
