Nasdaq Under Microscope
By examining the weekly charts, we can see a number of positive technical factors that are controlling the index’s movement over the short and medium terms including:
- Trading within an upside channel that represents the medium term bullish trend which started at the bottom at 1017.75.
- This upside channel led the index to trade within the main upside channel which represents the general upside trend that started back in October 2002.
- The SMA 50 which is providing the needed support for the bullish upside wave over the medium term.
- The strong bullish technical model which was completed by breaching the neckline at 2055.
- Breaching the horizontal pivot resistance level at 2222 and confirming this breach after a successful retest.
All those factors that are shown in the main chart above make us believe that the general upside trend will continue and that targets are set at 2600 and then the 2850 level.
On the other hand, the Stochastic is providing negative signals that could delay the rise and cause some volatility for some time, however, as we can see in the minor picture, that a bullish technical model has been completed and was followed by a successful retest to its neckline, where we believe that this model will beat the negative signs provided by the Stochastic and lead the index to the upside.
We should note though that breaching the support levels between 2222 and 2175 could reverse the direction over the short and medium terms to the downside.
Georgia Anderson` Financial News Network, trader, trader education, online forex, daytrader,forex currency, forex software, investors, forex trading, forex