NASDAQ Prints Fresh Highs Around 11527 Levels

21 August 2020

NASDAQ continues to defy resistance yet again and prints high around 11527 levels. The indice has pulled back a bit and is trading round 11510 levels as we prepare the update. A bearish turn might be closer that we think and a break below 11200 would confirm.

NASDAQ probable wave counts are as follows: The indice had dropped along with Dow Jones and SPX500, in February-March 2020 and print lows around 6609 levels. This was in line with other global indices as well. The subsequent rally thereafter has managed to clear past previous highs around 9756.

NASDAQ has managed to push prices through past swing highs and print fresh highs around 11527 levels today. The rally between 6609 and 11527 also seem to be an impulse, which could be the final leg higher before resuming lower again.

If the above counts are correct, NASDAQ might have terminated higher around 11527 mark, completing 5 waves at a larger degree. Also, it might be preparing to reserve lower and produce a corrective drop of the same degree.

Further note that each high in NASDAQ has not been matched by its peers Dow Jones and SPX500, which is a bearish divergence scenario. It could be just a matter of time before a huge bearish reversal gets underway. We need to see a break below 11200 support from here.

Traders might have already taken profits on the long positions initiated earlier and remain flat as NASDAQ retraces. Aggressive traders might be preparing to initiate short positions after a break below 11200 levels. Watch out for bearish reversal unfolding soon.

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