Following the part 1 of bearish outlook on US markets – Part 1 – Dow Jones, we shall now look at the part 2 on Nasdaq after hitting the stubborn resistance last week.
Similarly to our earlier post on Dow Jones, we shall now analyse Nasdaq on both daily and weekly chart.
Let’s get started!
Nasdaq Daily Hitting Major Resistance
I was looking at Nasdaq hitting the 200d MA resistance last week and I posted to watch the 50d MA support. I also mentioned that breaking 50d MA would signal Nasdaq to retrace down to the support level at 2,200. You can see that the Nasdaq indeed formed 2 long candle in just 2 days to almost retest the 2,200 support level.
That’s the power of technical analysis and recognising the support & resistance levels are very helpful to determine the stop loss and profit target for traders like us.
Now, we know that 2,200 is the major support. It is well supported, then, we should see a rebound near that level. On the other hand, if the support is broken, that would signal a new low and can lead to further diving on the Nasdaq.
I am seeing the Nasdaq to form a sideway market now on the daily chart now. Let’s take a look at the weekly for some confirmation as well.
Nasdaq Stock Market Trends Sep 6, 2008
Nasdaq Daily Hitting Major Resistance
Nasdaq weekly chart resembles the daily chart pretty much. Only main difference observation you can see is that Nasdaq is resisted by 200d MA on daily chart and now near the 200w MA support on Nasdaq weekly chart.
Nasdaq tried to rebound 2 times near the 200w MA support level, do you think there would be a 3rd time? Well, I do not, I can’t tell until I see how the market reacts in the coming week.
Overall, I am seeing a sideway market on Nasdaq now. If no major bad news hitting the market this week, the Nasdaq can definitely rebound on the support level. On the other hand, I am also seeing a possible descending triangle in formation, which would lead the Nasdaq diving further down, that would be confirmed if the 2,200 support level gave way.
Nasdaq Weekly Chart Stock Market Trends Sep 6, 2008
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Welcome back to InvestMoneyLab, you can now join our Facebook Friend of InvestMoneyLab to get a FREE Book by T. Harv Eker Now! You can also receive latest profitable trading system and stock picks for free in future. Thanks for visiting!
