Dear Traders,
Today’s analysis will provide a technical overview of the short-term picture for the NASDAQ index.
The NASDAQ index finds itself most likely still within a complex correction. The important point for today’s short-term analysis is that chances are good that price will not rally directly from here into a new high. Price action since the Apr 4 low works best as an ABC zigzag. Only a powerful increase in bullish momentum could turn this into a direct trend continuation, but price behavior is pointing against such a scenario. Hereis what I see:
Therefore the short-term bias is to the downside, especially if a wedge continues to form while slowly grinding towards 7035.
It is difficult to determine at this time where exactly a potential bearish move could end. However initial key support area comes in around 6720. If these levels don’t hold, a drop towards 6530 becomes quite likely. The most bearish scenario could even target a price within the range of 6295 – 6170.
For immediate trading purposes, it may be best to trade mainly off r/s levels and momentum changes, with short-term targets.
All the best along your trading journey
Hubert
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