Despite the horrendous sell-off in the past week and all the negative news (omicron variant, bond tapering fear, persistent inflation), the fact remains that NQ's uptrend has not been breached and we are still only in "correction" (and not "bear") territory.
Nasdaq is now at an intermediate support, which is:
1. a prior resistence turned support at A
2. 50% fib retracement of BC swing up
3. 100% fib projection of the previous AB swing down at C
A worse case scenario for this "correction" is for NQ to retrace all the way to the rising longer term trendline (red) around 15300. Should this happen, then NQ could find more solid support here (which is also the 61.8% fib retracement of the BC swing). Even at this level. the correction would have been around 8.8%, similar to the last few major corrections we have been seeing this year.
So my take is not to get too bearish at this juncture. The signs could be clearer after the next Fed meeting minutes on Dec 15. For now, I'll let the rising trendline speaks for itself.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). 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 and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
Nasdaq is now at an intermediate support, which is:
1. a prior resistence turned support at A
2. 50% fib retracement of BC swing up
3. 100% fib projection of the previous AB swing down at C
A worse case scenario for this "correction" is for NQ to retrace all the way to the rising longer term trendline (red) around 15300. Should this happen, then NQ could find more solid support here (which is also the 61.8% fib retracement of the BC swing). Even at this level. the correction would have been around 8.8%, similar to the last few major corrections we have been seeing this year.
So my take is not to get too bearish at this juncture. The signs could be clearer after the next Fed meeting minutes on Dec 15. For now, I'll let the rising trendline speaks for itself.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). 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 and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)