In this article i’m going to talk about what’s happening now on the NASDAQ and give you some technical analysis on the recent price movements. Let’s just get straight into it:
What’s happening now on the NASDAQ? The Monthly Time Frame
Let’s take a look at the monthly timeframe to remind ourselves of the highs the NASDAQ had reached recently:
As you can see, before this month, marked with the big red, most recent candle on the monthly timeframe, the market had pushed up considerably. The RSI was very overextended and the volume was not significant compared to the periods where significant momentum was noted (see the period between July 2018 and July 2022, for example. The market did look like it was in need of a pull back, at the very least.
Now let’s take a look at the daily timeframe.
What’s happening now on the NASDAQ? – The Daily Timeframe
As you can see, the market was trending for a lengthy period of time, above the diagonal trend line marked on the chart. (If you would like a discount to the software I use – Trading View, please click the link below). In November the price broke this support and sailed down. It kept going until it reached the next lower level support area marked horizontally on the chart at price 23,945.
Currently the market is at a critical point – it has bounced slightly on the support level, but will it continue to sail away from this area? It’s currently touching the ‘underside’ of the diagonal support, which, as we know, can now be seen as a potential resistance.
Let’s take a look at the ‘zoomed in’ view, on the 30 minute timeframe. By the way, if you would like to understand more about ‘multiple timeframe analysis’, please see the video below:
The 30 minute timeframe:
You can see more clearly on the 30 minute timeframe, that the price is currently exactly at the diagonal resistance level. It has just made a ‘higher high’ and it’s currently trying to form a ‘higher low’:
Why does this matter? The market will be considered to be trending ‘up’ once it is making higher highs and higher lows, consistently. It remains to be seen whether this will continue at the moment. As I mentioned in previous videos and posts, it could do the same thing it did previously, and pop back down, below the EMA line – you can see it did this on around the 20th – 21st November and before this, around the 13th to 14th of November.
If you would like to understand more about support and resistance levels, and how to read the markets by identifying highs and lows in a trend, please see my video here and related article:
Highs and lows video:
Blog article to help you spot whether a trend is changing direction:
Amazing secrets to help you make more money trading – spot a downtrend early! – Trader Pro
Support and resistance levels – blog article:
Support and Resistance – Trader Pro
So what’s happening on the NASDAQ then?
So ultimately, what’s happening now on the NASDAQ is that the market is trying to recover but patience is required to understand whether it will continue trying to push up. Patience is key for traders who do not short the markets.
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Nothing in this video should be taken to constitute financial advice. Although we make observations on the current state of the markets, nothing we suggest should be taken as an indication of what they will do next. You are required to carry out your own due diligence before entering any of the markets.