Nasdaq 100: Bull Trend Ready to Resume? GOOG, MSFT, RKLB Signal Rebound

The Nasdaq 100 has shown resilience amidst a multi-month pullback, indicating that underlying strength is still present. As momentum shifts upward from support levels, traders are contemplating whether this signals a short-term bounce or the continuation of a broader bullish trend. The upcoming Federal Open Market Committee (FOMC) meeting poses a significant risk event, yet several leading stocks are beginning to exhibit signs of recovery.

Nasdaq 100 Futures Technical Analysis

The weekly chart reveals a long-legged doji around the November low and the 50-week Exponential Moving Average (EMA). Momentum has improved this week, with a bullish divergence on the Relative Strength Index (RSI) forming in the oversold zone. The current bias remains bullish as long as the Nasdaq holds above the 24,215 low.

On the daily chart, Nasdaq futures have increased for two consecutive days, surpassing the 25,000 mark, although trading volumes have been declining. If the Fed adopts a less dovish stance with higher inflation forecasts or a revised dot plot, a pullback could occur in the near term.

Stock Analysis: Alphabet (GOOG) and Microsoft (MSFT)

Despite the broader index's choppy price action, two stocks are being monitored for potential rebounds: Alphabet (GOOG) and Microsoft (MSFT).

Alphabet (GOOG)

GOOG has shown resilience, holding key support levels around $300. A bullish engulfing candle on March 9 indicates that it is not ready to drop below this threshold. The 292–297 zone has previously acted as solid support. A minor pullback towards $300 is possible, but a break above the 50-day EMA could lead to bullish continuation, targeting $320 and potentially $340.

Microsoft (MSFT)

MSFT is stabilizing above critical support levels, with the weekly chart suggesting a potential bounce. After a sharp pullback from a double top, the stock has entered a consolidation phase above the 200-week EMA. A doji at the lows was followed by a bullish range-expansion week, indicating that the stock is not yet ready to rally. A fresh bearish catalyst is needed to push prices lower, while bulls may consider buying dips towards the 200-day EMA.

Rocket Lab Corporation (RKLB) Technical Analysis

RKLB experienced significant gains following positive developments regarding its Neutron rocket and a substantial $816 million contract, indicating strong demand and improved revenue visibility. Although the announcement of an equity distribution agreement for up to $1 billion of common stock raises concerns about potential dilution, the positive news surrounding the Neutron rocket and the contract are the primary drivers of the stock's performance.

The daily chart shows RKLB in a clear uptrend, with bullish momentum returning after a period of support around the 100-day EMA. However, the stock's recent high approached resistance near $80, and the RSI indicates overbought conditions, suggesting a possible minor pullback. Dips towards the $70 level may present attractive re-entry points for bullish investors.