NASDAQ On a critical 1D MA50 test. Act depending on candle close

Nasdaq (NDX) continues to trade within the long-term Channel Down that has helped us identify the trend and take low risk/ high reward trades over the past few months. Our position hasn't changed since our previous update 10 days ago:


The bottom and new Lower Low of the Channel was correctly spotted, and now the price is about to test the critical 1D MA50 (blue trend-line). In fact today's flat-red candle could be the same as the rejection one on March 21. A clear 1D candle close above it, should be enough to test the 1D MA100 (green trend-line) which was our medium-term target originally. Failure to do so can alter the similarities with the March fractal and push the price to the 1W MA200 (red trend-line), so in that case be quick to take profits if you followed us and bought on that bottom.

As mentioned previously, a 1D candle close above the Lower Highs (top) trend-line of the Channel Down should be treated as a buy break-out signal with the 1D MA200 (orange trend-line) as the target. Similarly, with the 1W MA200 being a significant multi-year Support, a weekly closing below it should target the 1W MA300 (yellow trend-line, scroll chart to see it below).




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