Will Nasdaq's recent upswing pave the way for a stronger month ahead?
As we round up our analyses for the day, week, and month, our attention is captivated by the tech-centric NASDAQ. While we usually set our sights on longer timelines, today calls for an exception. We delve into the hourly charts, and the storyline here is, in a word, riveting.
Over the past 48 hours, there's been a noticeable shift in momentum. A bullish reversal started to take shape as of Wednesday evening. By Thursday, this upswing had solidified, characterized by the formation of an inverse head and shoulders pattern, easily distinguishable by its yellow marking. But the action didn't stop there: the price managed to bulldoze its way past the neckline, represented by the green line. Additionally, the short-term downtrend, depicted by the blue line, also conceded to the bullish push.
Fast forward to today, and another significant barrier has been crossed. The price has managed to break free from the midterm downtrend, shown by the black line. With the combination of a bullish pattern and three resistances now in the rearview mirror, the short to midterm outlook for NASDAQ is decidedly optimistic. The scales seem to tip in favor of buyers, who might want to seize this opportunity. However, it's worth noting that any move below the green support could reignite sell signals. Yet, judging by the current climate, such a scenario appears less likely.
Author
Tomasz Wisniewski
Axiory Global Ltd.
Tomasz was born in Warsaw, Poland on 25th October, 1985.
