Nasdaq index price action -what now?
Last week NASDAQ index rally attempt stalled at 7230 area and reversed in Thursday and Friday. It is not a good sign for bulls but if we carefully examine daily chart, we will see few strong resistance clusters and lots of downward pressure in the price space created by previous bearish action. It is not that easy for the price to overcome this 7080-7350 area with the first attempt. The reverse is quite technically expected and further direction will be determine very soon, likely this week.
Monday morning started with risk-on mood in Asia but quickly turned sour. Markets are obsessed now with long-expected top US-China talks – anticipations are high this meeting will somehow calm trade war rhetoric and issues. If this is a case and other positive news underpin it, we may see another rally attempt this week. Price shall overcome 7080, 7140 and further previous high of 7230, yet I am pretty confident it will be stopped at 7320-7350 area.
Higher timeframes do not give me that much confidence that correction is over. Therefore, I remain bearish until price action will tell me otherwise.
Yet, for those who optimistically keep longs I would suggest to watch carefully the possible forceful break below 6970. If this happens, we will see a lot of pain and previous lows will be tested to say the least. Until then, however, I personally would be selling every rally from 7140 or better from 7230-7260.
Have a nice week ahead and safe trades !