NASDAQ Resistance Stands At 11300-11350 Mark

7 August 2020

NASDAQ might have carved a meaningful top around 11291, or could be very close to carving soon. A continued drop below 10400 levels from here would confirm that the indice has formed a meaningful top around 11291 levels, going forward.

NASDAQ probable wave counts since 6609 are as follows: The indice has rallied from 6609 levels through 11291, sub dividing into 5 waves as labelled from 1 through 5 on the chart here. Unlike its peers Dow Jones and SPX500, NASDAQ has print fresh highs.

This phenomenon could be referred to as a bearish divergence, and might be indicating a potential trend reversal. A more objective approach would be as follows. Immediate support is seen through 10316 levels. We must allow prices to break below that mark to confirm a bearish reversal.

As discussed above, if the impulse wave is in place already, the indice should ideally produce a corrective wave lower towards 9495 at least. Having said that, please note that if NASDAQ has to change the trend, it would not produce a corrective drop.

In case of a bearish reversal, the indice would continue dropping lower towards 6609 levels, which is Wave 4 of one lesser degree. Either way, the indice should be preparing to drop lower from here or from 11350 levels respectively.

Traders might take short potions around current price at 11200, with protective stops above 11500 levels and projected target towards 9495 levels respectively. A break below 10400 would be encouraging to bears.

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.

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