In this article i’m going to have a look at what’s happening on some of the major indices, with a view to answering the question, ‘what are the best stocks to buy now?’. Let’s jump straight into it!
What’s happening on the NASDAQ today – best stocks to buy now
I mentioned a few days ago that the market was downtrending and the old diagonal support had become a resistance. This followed the same pattern, until today, when the market broke through the diagonal resistance line, on the 30 minute timeframe, as you can see, above. The market is now forming a new pattern – let’s mark it on the chart:
As you can see, the price has been bouncing off the diagonal trend line above since earlier today. It does appear to be uptrending again with a new low having formed at a higher price than the previous one.
I can’t consider the best stocks to buy now, without also considering the bird’s eye view of the NASDAQ. Let’s look at the daily timeframe:
As you can see on the daily timeframe, the histogram bars have turned red. However, the RSI has pulled back quite a bit from where it peaked, marked above with the turquoise horizontal line. It is not clear to me currently, whether it will keep pushing up again or pull back some more… Ultimately, I think the type of shape such as the one drawn below, would be reasonable, in circumstances where it’s going to keep on pushing up:
You can see it has made this pattern a number of times before, when moving away from the enormous diagonal support which it bounces on from the point of view of the daily/monthly timeframe.
How can we know whether it has finished pulling back? Well… the fact it’s making higher highs and higher lows on the 30 minute timeframe, is a good sign. If it pushes up past the old all time high, this would be another good sign…Let’s take a look at that timeframe again:
Once it starts bumping up above the other previous all time high as illustrated above, this would give me a bit more confidence but i’m always keeping an eye on the bird’s eye view as well, and the RSI indicator, on all timeframes.
As of right now, I think i’m going to wait a little longer…
I hope you found this article on the best stocks to buy now, helpful!
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