The index started a downside correction after breaching the support for the medium term bullishness and temporary halted the move at 23.6% correction to rebound due to oversold signs and positive crossover on Stochastic over daily basis above.
Nasdaq In Depth
We can see a bearish formation that started last November and we believe that the upside rebound is forming the right shoulder of this pattern; we expect that the intraday upside move will settle for reach 100 Days MA at 1880.00 before returning to attach the neckline proposed at 1780.00.
We see that the index will extend the short term bearish correction activated with the breach of 1780.00 towards targets around 1660.00 38.2% correction; the move might extend further south towards 1536.00 the full target for the bearish pattern.
Breaching 1880.00 opens the way towards the support for the medium term trend previously breached as aforesaid in an attempt to return to the upside wave again without the need for the correction.
By: Yasir Mubarak
Main Technical Analyst
[email protected]
www.ecpulse.com