04, July 2016

Nasdaq (a 4-hour chart)

Nasdaq (a 4-hour chart)

General overview

The US stock market grew on technical factors in the first half of Friday trading. The buyers received some support at the European session. The European Central Bank is considering changes in its program of bonds purchases. At the same time the head of the Bank of England hints about further monetary easing in order to overcome the economic consequences of the Brexit.

Current situation

The index spent Friday in a green zone. NASDAQ showed a growth and reached the next resistance within the hours. The resistance comes at 4440, the support exists at 4400.

The indicators still recommend long positions. MACD is in the positive area; its histogram grew, that is a buy signal. RSI grew upwards to the overbought area. If the oscillator grows further, that will be another buy signal; if its signal line decreases that will be a buy signal. The price bounced from the 100-day moving average and was able to break the 200-day moving. After the break the price remained on the 200-day moving which is horizontal. The Moving Averages (50 and 100) direction is downwards.

Trading recommendations

We believe the growth will be continued now. After the resistance level of 4440 breakthrough upwards the way to the resistance 4500 will be opened. We do not exclude the falls to 4350.