NASDAQ READY FOR A BULLISH BREAK-OUT?
The current structure of the market suggests a "buy the dip" or V-shaped recovery after the sell-offs on Friday and early Monday.
Technically, the index is at the upper end of its range, suggesting that buying pressure is firmly in place and could open the way for new gains. The targets are clear: if the upper limit of the range is broken, the 38% Fibonacci retracement at 18,585 points would be the 1st target.
The 50% Fibonacci retracement at 19,000 points would also seem a potential target level.
In terms of technical indicators, the RSI has broken its downtrend line. This is a sign of increasing buying power.
The volume profile also shows that the 19,000-point level has brought great enthusiasm among buyers and sellers.
On the other hand, a return to the lower end of the current range, followed by a break-out, would allow sellers to take control and take the index back to its long-term uptrend line.
Maxime Dominguez - Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Technically, the index is at the upper end of its range, suggesting that buying pressure is firmly in place and could open the way for new gains. The targets are clear: if the upper limit of the range is broken, the 38% Fibonacci retracement at 18,585 points would be the 1st target.
The 50% Fibonacci retracement at 19,000 points would also seem a potential target level.
In terms of technical indicators, the RSI has broken its downtrend line. This is a sign of increasing buying power.
The volume profile also shows that the 19,000-point level has brought great enthusiasm among buyers and sellers.
On the other hand, a return to the lower end of the current range, followed by a break-out, would allow sellers to take control and take the index back to its long-term uptrend line.
Maxime Dominguez - Analyst for Activtrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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