Will the NASDAQ Bounce Back from its 14,450 Lifeline?
23 October 2023
In the realm of technical analysis, the spotlight today is on NASDAQ. The index has been enduring tumultuous times of late. As of now, NASDAQ seems to be in the midst of a free fall, marking its fifth consecutive bearish candle. The ferocity of the last four candles is particularly hard to ignore: characterized by their elongated bodies, they unmistakably point south, hinting at a stormy weather ahead.
However, what makes NASDAQ's situation particularly gripping is its precarious position at a pivotal support zone. This isn't just any support. Hovering around the 14,450-point mark (orange), it represents not only a horizontal plateau but also traces the lower boundary of a wedge pattern - the lower black line to be precise.
For those who sport a bullish hat, this is the line in the sand. If there's any hope of arresting this slide, it must manifest here. Optimists would be yearning for the appearance of a hammer candle or perhaps a bullish engulfing pattern, signaling a potential reversal. Yet, should NASDAQ breach this orange support, it would be interpreted as a clarion call for sellers. In such an event, the index might set its sights on the 38.2 Fibonacci level, bathed in a distinctive yellow.
However, as long as NASDAQ stays north of the wedge's lower line, there's still a glimmer of hope for those banking on a rebound.