Just to share an update to the analysis yesterday, where a sell-off was projected based on a completion of a C wave.
Today an ending diagonal pattern appears to be completed, rather than a standard C wave.
If price breaks out of the upper channel of the diagonal with MACD confirmation after FOMC news later today, then there is a good risk-reward set-up.
There is near term price and Fibonacci support at 12.9k (and also 12.75k).
But I expect price to reach 13.6k and break the 50-61.8% Fibonacci levels which have been tested twice recently and a surprise to hold a 3rd time.
Please note this assumes no FOMC unexpected news!
Good luck!
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Just an update after the surprise failed retest at 13.3k, the Nasdaq looks bearish today. I will monitor to see if support holds and also if there is any pattern that becomes noticeable.
can we confirm that the bearish run is over or will it look for downside after the news
Chaython
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@THATWAY, pumped, then EU open dumped, completing a head and shoulders, but we will open with a higher low. above 12900 support. Looks' beneficial to go long now, but options stop trading tomorrow. So could go down to then.
kalio5
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A surprise to see a sell-off this morning, as I thought after the FOMC news there would enough momentum to take it higher. And as it means the 50-61% Fibonacci levels have been tested 3 times.
It looks bearish today as its broken channel support, but there should be support at 12.9k and around 12.7k.
And very good point on options as I had not considered this.