NQ 100 bulls aiming at 88.6% Fib at 25,858

Chris Svorcik FS method

The Nasdaq has made a dramatic bullish breakout this week above the candle high of last week (orange box). The reversal happened at a 38.2% Fibonacci retracement level (blue box), which seems to complete an ABC pattern (pink) within wave 4 (green).

Weekly chart

A new higher high is most probable

Despite all of the geopolitical, economic, and technological circumstances testing the financial markets this year – an uptrend continuation seems most likely at the moment.

However, the uptrend could be volatile and choppy – something which is not uncommon in wave 5 (green). Especially considering all of the volatile news that has been dominating the headlines.

Here are the three main scenarios:

Green arrows indicate truncated wave 5: a choppy uptrend is likely to break the top for a wave 5 but with lots of volatility and hesitation – especially close to the double top (red box). Sometimes truncated waves 5 do not even manage to break the top.
Orange arrow indicates a larger bearish correction or reversal: a break below the 38.2% Fibonacci level will see price probably fall back to the 144 ema long-term average.
Red stop sign indicates an invalidation of this Elliott Wave pattern: a break below the top of wave 1 (green) means that the current analysis is invalid and a reversal is likely.

Four-hour chart

Bullish price action above 21 ema zone and ET zone 6

Price action showed strong bullish momentum with 8+ candles not hitting the 21 ema zone (green diamond). Price has also reached ET zone 7, which further confirms that price action is an impulsive phase.

Here are the main levels to monitor:

Green arrows: uptrend continues soon for a move towards ET target zone 7 and 8. Price is likely to test the deeper 78.6% and 88.6% Fibonacci resistance levels of the entire bearish correction.
Blue arrow: uptrend continues after price action tests the 21 ema support zone.
Red arrow: a strong bearish reaction is expected to occur at 78.6% or 88.6% Fibonacci retracement level – or otherwise at the double top resistance.
Orange arrow: the uptrend fails to follow through and a deeper correction takes place below the support.
Pink arrow: a test of the previous bottom is likely to find support.

Author

Chris Svorcik

FS method

Chris Svorcik is a trader, analyst, and educator with over 15 years of experience in financial markets, specializing in moving averages, market structure, and price patterns.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.