17, October 2016

Nasdaq(a 4-hour chart)

General overview

Wall Street traded higher on Friday after positive bank earning reports and on the back of the positive US statistics.

Current situation

The index extended its recovery on the European trade on Friday. Traders pushed the price higher and could escalate up to 4845 where the 50-EMA stopped the upward momentum. The price pierced the line and roll back below the 200-EMA ahead of the US opening. The 200-EMA is neutral, the 50-EMA is crossing the 100-EMA downwards. The resistance is seen at 4835, the support is at 4800.

MACD is in the negative area. MACD grew which indicates the sellers’ positions weakening.  RSI is within the neutral area.

Trading recommendations

NASDAQ had a negative day on Friday. If the negative tone prevails the index will test 4800 and may drop to 4770.