Nasdaq can still dump your bags and this can be the case!

US100 - Today I will walk you through my thoughts on the Nasdaq for the coming days this week and into next week.

First, fundamentals!
We have a war in the Middle East that, as of today, doesn’t seem to have any proper solution. Also, the oil price continuing to stay high indicates uncertainty. In my view, this is not reflected in the Nasdaq yet. I also know that people keep talking about the usual “Taco Trump” and so on, but I think it will take more time before that becomes a real factor.

Therefore, I would like to combine these fundamentals with the technical chart, because we have hit a major sell block once again—where we usually see a larger sell-off happen. Also, the MACD is turning at the moment, with downward momentum building up. Because of this, I strongly believe that the bottom we made on Tuesday is an illusion to hide the real sell-off that is coming.

One really important thing, though, is yesterday’s daily candle, which shows a very obvious upward trend. Because of that, the risk/reward for this trade, personally, isn’t the best. I’m looking for further confirmation before taking it.

Hopefully you found this interesting. I’ll try to keep updating—so give a follow if you like this kind of analysis.