End of the sideways trend for Nasdaq
16 April 2024
Hello traders, in today's analysis we delve into the world of indices, where bearish sentiments have begun to dominate, signaling a corrective phase. Across various indices, including NASDAQ, we're witnessing price action at levels not seen since February. Today, our focus is on NASDAQ.
Since the end of February until yesterday, NASDAQ has been confined within a sideways movement, as depicted by the yellow rectangle on the charts. However, this period of stability came to an abrupt end yesterday as the price broke through both the orange horizontal support and the dynamic support marked in blue. This breach has triggered a sell signal.
The question now arises: where do we anticipate the price to head next? Historically, the area around the 38.2 Fibonacci level has served as a reasonable target during corrective phases, especially considering its significance as a previous peak in December and January earlier this year.
With this in mind, the correction could potentially see NASDAQ reaching around 16,800 points. As of now, the sell signal prevails, and any reversal of the negative sentiment would require the price to reclaim both the orange horizontal support and the blue dynamic support. However, the likelihood of a swift reversal appears to be limited at present.