Still remember when was it that we see the Dow, Nasdaq and S&P break through the ground?
Since then, the price has almost recovered all of the losses in a very gradual and staggering fashion.
But last Friday, we saw the biggest drop in 5-months based on a week.
It also showed a bearish engulfing candle within a supply zone.
And whatever that's just explained, it...
Nas100 is ready to melt. Confluence analysis:
1.- Bearish engulfing.
2.- Divergence MACD Histogram.
3.- Price up & Volume down = Bearish
4.- RSI oversold
5.- 5th wave completed
Place a Sell Stop a few pips bellow the engulfing candle , stop loss few pips above last high
When you short a stock you are taking on infinite risk, if the roles were reversed I would not be as tactical with this position. For now, it looks like we will trade slightly higher before another opportunity to short appears.
Rally in Nasdaq (NQ_F) from December 26, 2018 low remains in progress as an impulse Elliott Wave structure. An impulse structure consists of a 5 waves move. Wave ((4)) of this impulse move has ended at 6965.57. As the chart shows, after forming wave ((4)) low, Nasdaq has rallied higher and broken above March 4 high at 7211.5, confirming that wave ((5)) has...
We have rallied a long way since the lows, markets are not linear and the price will have to digest the move.
What will likely drive the markets higher is earning, a contrarian but realistic outcome when you consider that wage growth is outperforming inflation by almost 3%.
This, of course, would likely lead to a price rally while earnings multiples are falling!
The daily chart clearly shows that the market is going to correct the previous strong upward movement. RSI and MACD support a possible downtrend movement.
If we look at the 4H chart, we can see the price attempts to break below SMA100. It's a signal that the uptrend can be reversed. MACD supports the further downward movement. DMI is bearish, and ADX line...