03, August 2016

Nasdaq (a 4-hour chart)

Nasdaq (a 4-hour chart)

General overview

The USA stocks traded lower on the back of a modest earning report from Pfizer and the weak USA data.

Current situation

Technically, the main trend is up, however, the index closed bearish on Tuesday. The sellers led the price from all-time high to the support 4700. The resistance is at 4800, the support stands at 4700.

The indicators recommend short positions. MACD is in the positive area. The histogram decreased which indicates the buyers’ positions weakening. RSI left the overbought area and approached the oversold one.

The 50-EMA stopped the yesterday’s decrease. The 50-EMA acted as a support for the price. The 50, 100 and 200 Day EMAs are moving upwards.

Trading recommendations

If Nasdaq does make a breakout at that level 4700 the index will resume its downward trajectory. If successful, it is expected to fall to the level 4650.