Big Bearish Day- A Weakness or Buying OpportunityNasdaq is in a strong uptrend. It broke above 23,966 and shot up to 25,191
As it has been taking support at 50EMA multiple times on daily chart, the recent fall of more than 1200 points was contained exactly near the same level.
From the price action point of view-
The fall ceased near the previous breakout zone near 23966, previous resistance acted as support.
A single candle on the daily chart with no continuation has to be an attempt to sweep liquidity below important swing lows near 24200 and 24000 (see 4H chart).
The action near 24250 is also reflecting absorption.
The psychological round number of 25000 could stay as resistance for some time and again push it back in the 24,400 to 24,500 zone offering a short-term low risk buying opportunity.
In this backdrop, 24000 to 24250 zone, accompanied by the strong trend in the background, may again cushion the price back to new highs.
What is your point of view?
Is the recent fall a sign of weakness or an opportunity to buy?
#Educational post not a recommendation to buy or sell.
