The Nasdaq has now completed a Double Top formation

Carol Harmer Charmer Trading

The NASDAQ has now completed a Double Top formation, beginning on 30th October and completing on 28th January. After this week’s losses, the market is sitting directly on a major support zone where the 200‑day M/A intersects with long‑term trendline support at 24,246.

This is a critical line of defence. Buyers need to aggressively defend this area. If they fail, sellers — sensing weakness — will push the market lower toward the Double Top target at 21,550.

When we step back and look at the very long‑term chart, momentum, RSI, and stochastics all favour a move lower. However, this designated support zone suggests that initially, buyers will be there holding the line. Historically, you never sell the first break of a major support level combined with the 200‑day M/A.

Stops and algos will be selling lower levels, so confirmation of a deeper move only comes on a second break of this zone.

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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