NASDAQ Potential Top In Place At 12466

04 September 2020

NASDAQ might have finally topped around 12400/500 levels yesterday. The indice has produced a significant evening star candlestick pattern, indicating a potential trend reversal. A drop below 11280 would confirm a top is in place and bears are back in control.

NASDAQ probable wave counts are as follows: The indice had dropped to 6629 lows in March 2020. Since then, it has rallied all through 12466 mark carving a series of higher lows and higher highs. The above rally can be sub-divided into 5 waves making it an impulse.

Ideally, an impulse rally is should be followed by a corrective drop but in this case it might not be a correction. Since the recent rally between 6629 and 12466 could be a larger degree Wave 5, NASDAQ might have terminated a larger up trend.

If the above proposed wave counts are correct, NASDAQ could be up for a bearish trend reversal and a minimum criteria could be a drop towards 6629 levels. Once it breaks below 6629, a larger degree correction might have completed its first wave.

For the above structure to fall in place, NASDAQ should first drop towards 11200 and 10800 respectively. This would also break the trend line support since March 2020. The indice might be a good candidate to be sold on rallies thereafter.

Traders might be preparing to sell after 11200 breaks. Any counter trend rally thereafter might be seen as an opportunity to go short with protective stops above 12500 levels.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In