The Nasdaq Composite index has been threading around the psychologically significant resistance level at 14000.00, which represents an all-time record for the index, for a couple of days now, and traders are keen on seeing what happens next. More precisely, they would like to know whether the existing uptrend is strong enough to break out above the resistance, or the time has come for a new correction.
The rally was bolstered recently on robust earnings data from major companies, such as Google's parent company Alphabet Inc. and Apple. The tech giants' solid quarterly performance strengthened the Nasdaq; however, this positive impact is likely to diminish now that the earnings season is over for most of U.S.' biggest companies.
Given the current slow week, the time seems perfect for bears to regain control in the short term before the underlying rally can be extended further north.
As can be seen on the daily chart below, the price action is indeed currently testing the all-time record at 14000,00. If it manages to successfully break out above this psychological barrier, the Nasdaq will then continue climbing into uncharted territory. However, if the bears manage to jolt the direction of the price action now, a correction could potentially reach either the major support at 13500.00 or even the psychological support at 13000.00.
|Short Term||Long Term||Net % Gains|
|989 BPS||171 BPS||Pending||Pending||
|989 BPS||171 BPS|
|Net % Gains|
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