There are a confluence of supports within 12,280 - 12,410:
- a 23.8% fib retracement of the major post covid crash AB swing @ 12,280
- 50% fib retracement of the smaller BC swing
- horizontal resistences turned supports
- mid term trendline support
NQ dipped into this zone since last Thurs and had been bouncing around here for the past 3 days.
While there is no clear signal of a reversal yet, the odds of NQ crashing further from here is lessened by the fact that both the S&P and DJ had been relatively strong still. If it were all gloom and doom because of an impending (or expectations of an) interest rate hike, then the S&P and DJ should not be spared. Hence I feel it is more likely that NQ was just having a (short term) knee jerk reaction due to it having ran up too much too fast and rotation into stocks that have not ran so much. Some of the strong tech stocks have corrected 25-30% in just 3 short weeks and could be enough to attract some buyers back. I guess we would know soon within if the current support zone would hold (or break)!
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance. Thank you. Feel free to give me your thoughts ! :)
- a 23.8% fib retracement of the major post covid crash AB swing @ 12,280
- 50% fib retracement of the smaller BC swing
- horizontal resistences turned supports
- mid term trendline support
NQ dipped into this zone since last Thurs and had been bouncing around here for the past 3 days.
While there is no clear signal of a reversal yet, the odds of NQ crashing further from here is lessened by the fact that both the S&P and DJ had been relatively strong still. If it were all gloom and doom because of an impending (or expectations of an) interest rate hike, then the S&P and DJ should not be spared. Hence I feel it is more likely that NQ was just having a (short term) knee jerk reaction due to it having ran up too much too fast and rotation into stocks that have not ran so much. Some of the strong tech stocks have corrected 25-30% in just 3 short weeks and could be enough to attract some buyers back. I guess we would know soon within if the current support zone would hold (or break)!
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance. Thank you. Feel free to give me your thoughts ! :)