NASDAQ, Triangle Forming, Bearish Breakout More Likely!

Hello, Traders Investors And Community And welcome to this analysis about the current situation facing the NASDAQ INC INDEX and what we can expect the next hours and days. There are some important and significant signs I detected in observing the overall current price-structure and which will determine the further outcome. We are looking at the locally 4-hour timeframe. And at the beginning, it has to be said that NASDAQ is one of the strongest major indices at the moment compared to the SPX and DJI which printing bearish signs and already confirmed on the middler-term to the downside. In this case, the NASDAQ is close to its all-time-high and did not already confirm bearish to the downside but it is printing some bearish signs which should not be ignored.

In my chart, you can see that NASDAQ at the moment trades in a triangular shape which is marked in blue at my chart, the importance now is that this is a symmetrical triangle which can break to the up or downside when confirmed rightly, in this case, there is a higher probability given that we will break to the downside because NASDAQ is forming a bear-flag in the symmetrical triangle which gives the overall formation a more bearish than bullish shape, which should also be kept in mind is that we ran into strong resistance levels here and the other major indices already ran bearish to the downside, this can indicate that the NASDAQ will follow.

The bear-market is still not confirmedly over and although NASDAQ looks like the most bullish one of all the major indices with the current highs near to its all-time-high there still can follow more downside. At the moment we need to elevate and see if the good and prosperous uptrend established can continue to the upside or that more bearish supply pressure enters the market. In case that we break the current triangle with good volume and volatility to the upside, there is a good likelihood for NASDAQ given that it will take out its all-time-highs but that is not the most likely scenario currently because we have more bearish than bullish signs in the triangle.

After the triangle target at 96.7 is reached when the triangle confirmed rightfully we need to consider if NASDAQ can stabilize at this level and move higher or if the bearish pressure is too high and it continues more to the downside. It is also possible that we get some little bounces in this area and after that moving down again so we need to watch for a clear reversal that signals growth and the take out of highs in the structure here. When the bullish stabilization does not set in we need to prepare ourselves for more possible downside as the corona-restrictions and economy-damage can increase again when a second wave develops, therefore we need to elevate ourselves above mere speculation and do not get overly excited on possible bullishness, in this case, it is more important than always to trade what we see not what we think.

Thanks for watching, support for more market insight, and all the best.
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Information provided is only educational and should not be used to take action in the markets.