Daily Chart:
Breakout out of its previous consolidation phase, NASDAQ went on a run between 11/24/20 thru 2/17/21 peaking at almost 14200.00 for All-time highs. During that move, price respected the 10EMA before breaking down on 2/19/21. From its peak, price has fallen as low as 12% from the all-time highs. A Support area has been established around 13000 with multiple touches. Price has fallen below this price twice and twice the lower prices were rejected with the buyers showing their strength and buying it up. To further display the strength, higher lows were made and a previous trendline was respected as well. After making its way back above the Support Area of 13000, we finished the day with a spinning top candlestick.
The current state of the market can be compared to the previous consolidation that occurred after stocks reached all-time highs and peaked on 9/20/20. From that peak, stocks fell as low as 12.7% from highs. After multiple touches, a Support area was established at 10800.00. Here we had price fall below it once and reject lower prices. A trendline was created after a series of higher lows where price then made a move to Resistance area and breaking out shortly after. Look for history to repeat itself.
A lot of positives and strength can be taken away here from a “Long” perspective. The price rejections, higher lows, respect of previous trendline, and the price making its way back to Support area all display the buyer strength. We are also currently in an Uptrend and the spinning top candlestick at support during Uptrend is the que to reenter the markets. All these factors have led me to believe we are at a bottom. I will investigate the other major indexes for further confirmation and look to reenter the market.
The American Stock Market makes me proud to be an American. God Bless America.
Breakout out of its previous consolidation phase, NASDAQ went on a run between 11/24/20 thru 2/17/21 peaking at almost 14200.00 for All-time highs. During that move, price respected the 10EMA before breaking down on 2/19/21. From its peak, price has fallen as low as 12% from the all-time highs. A Support area has been established around 13000 with multiple touches. Price has fallen below this price twice and twice the lower prices were rejected with the buyers showing their strength and buying it up. To further display the strength, higher lows were made and a previous trendline was respected as well. After making its way back above the Support Area of 13000, we finished the day with a spinning top candlestick.
The current state of the market can be compared to the previous consolidation that occurred after stocks reached all-time highs and peaked on 9/20/20. From that peak, stocks fell as low as 12.7% from highs. After multiple touches, a Support area was established at 10800.00. Here we had price fall below it once and reject lower prices. A trendline was created after a series of higher lows where price then made a move to Resistance area and breaking out shortly after. Look for history to repeat itself.
A lot of positives and strength can be taken away here from a “Long” perspective. The price rejections, higher lows, respect of previous trendline, and the price making its way back to Support area all display the buyer strength. We are also currently in an Uptrend and the spinning top candlestick at support during Uptrend is the que to reenter the markets. All these factors have led me to believe we are at a bottom. I will investigate the other major indexes for further confirmation and look to reenter the market.
The American Stock Market makes me proud to be an American. God Bless America.
Since close of 3/29 at 13061, things have looked wonderful and price has climbed to 13784 (+5.63%). The bounce from support has broken above minor resistance area of 13617 and it is now sitting above it with multiple small bodied candles but is also over extended from the 10 ema. Because of this, I am expecting the move to slow down a bit until the 10 ema catches back up with the price. I am expecting price to make a move back down to 13600 area or start moving side ways a bit. Once the price is no longer overextended, it will build up enough buyer pressure to attack and take out the resistance area of 14100 and make a move to all time highs. This will then be a great time to enter stocks with strong bullish set ups and ones coming out of Accumulation stages.