Nasdaq 100, in its 2-hour chart, reveals the likelihood of declines. In this post, we expose our bearish perspective.

1. The Elliott wave structure suggests the completion of an upward five-wave sequence. This rally began on October 03, 2019.

2. RSI oscillator shows bearish divergences, which unveil that the price action is currently running in a fifth wave.

3. The sell-side positioning will trigger if Nasdaq's value breaks down and closes below 8,157.5 pts. In a conservative scenario, the potential profit target level is at 8,062 pts.

4. If the bearish movement extends the declines, the technologic index could continue dropping below the 8,000 pts, testing the 7,983.5 even until the 7,870.1 pts.

5. The bearish scenario will be invalid if Nasdaq soars and closes above 8,273 pts, or if the price pierces but doesn't closes below 8,157.5 pts.


Trading Plan Summary

Entry Level: 8,157.5 pts.

Protective Stop: 8,273 pts.

1st Profit Target: 8,062 pts.

2nd Profit Target: 7,983.5 pts.

3rd Profit Target: 7,870.1 pts




Try Secure Leveraged Trading with EagleFX!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD: Bounces off one-week low on Powell-Mnuchin comments, eyes RBA

AUD/USD probes pullback from multi-month high ahead of the key data/events. Fed Chair Powell conveys economic worries, US Treasury Secretary Mnuchin pushes for stimulus. Risks dwindle amid economic fears, uncertainty over the US covid aid package.


Gold: Wobbles near five-month low below $1,800 as Powell, Mnuchin weigh on risks

Gold prices seesaw around $1,77/78 during the early Tuesday morning in Asia. The yellow metal dropped to the lowest since July the previous day before bouncing off $1,764.73. Economic fears, need for stimulus raise bars for the bull’s entry.

Gold news

EUR/USD retreats after its first attempt to break above 1.2000

EUR/USD trades around 1.1940 after failing to break above the psychological threshold. Bulls retain control and would likely challenge the level once again.


WTI holds $45 as OPEC+ postpones output cut decision to Thursday

WTI keeps recovery moves from $44.51 despite multiple failures to regain $46.00. The oil benchmark dropped to the one week low on the previous day amid the US dollar recovery.

Oil News

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors