Todays analysis – NDX – Consolidating at a key below the multi-month trend line
Points to consider:
- S/R flip of dynamic support
- Overextended trend
- Fibonacci retracement targets
- 200 EMA mean reversion
NDX finally breaking below its strong multi-month trend, failing to break above the dynamic resistance, price is likely to have a steeper correction.
Downside targets derived from Fibonacci retracement are the .382 and .5 levels, also coinciding with market structure support.
As we get confirmation of further downside in the coming few days, price is likely to find support at the 200 EMA before further bullish continuation.
Overall, in my opinion, price action in the coming few days will indicate the direction of the next impulse and allow us to establish a bearish or bullish bias.
Points to consider:
- S/R flip of dynamic support
- Overextended trend
- Fibonacci retracement targets
- 200 EMA mean reversion
NDX finally breaking below its strong multi-month trend, failing to break above the dynamic resistance, price is likely to have a steeper correction.
Downside targets derived from Fibonacci retracement are the .382 and .5 levels, also coinciding with market structure support.
As we get confirmation of further downside in the coming few days, price is likely to find support at the 200 EMA before further bullish continuation.
Overall, in my opinion, price action in the coming few days will indicate the direction of the next impulse and allow us to establish a bearish or bullish bias.