NASDAQ 🟨 Upwards Channel with Price Action + Horizontal Levels

💬 The NASDAQ looks great, moving nicely within a channel in a picture-perfect uptrend.

Unfortunately for this beautiful looking chart, COVID is putting downward pressure on the rest of the market producing many less bullish looking charts.

Let's take a look at some levels to see if tech can hold up against the broader market's weakness.


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Support:

• S1: The newly created S1 orderblock is our first point of support. If the NASDAQ moves up from here into the weekend, this support could be relevant.
  
  
• S2: The S2 S/R flip is the next candidate for support if S1 can't hold. S2 gives us a chance to move up from here despite any short term price action.
  
  
• S3: At the S3 orderblock we break the bottom of the channel, potentially by way of what currently looks to be an ABC correction. Although S3 could offer support, breaking out of the channel, especially with the current corona fears could be a bad look.
  
  
  Resistance:
  
• R1: The R1 orderblock is the first point of resistance if the bulls can rally.
  
  
• R2: If we rally here we expect a reaction off of the R2 orderblock cluster with support being found on R1.
  

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Summary:
The bulls want to see the correction end here and bullish continuation to the top of the channel as illustrated on the chart.

The bears will want to see weakness over the weekend that causes us to lose the channel.

For now, there is no reason to assume the channel won't hold based on NASDAQ's chart alone, the only real issue is to what extent tech lets other sectors bring it down.


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