17, November 2016

NASDAQ (a 4-hour chart)

General overview

Wall Street moved lower on Wednesday amid oil prices decrease.

Current situation

The market sentiment switched to a bearish one. The benchmark recovery lost legs just above 4770. The index turned around and softened right after piercing the level. NASDAQ now seems to be heading towards its immediate support near 4740. A failure test of the 100-EMA caused a sell-off and the index weakening. The price is in-between the 100 and 50 EMAs in the 4 hours chart. The lines act as a resistance and a support for the benchmark. The resistance is seen at 4770, the support is at 4740. MACD indicator is at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. RSI is moving downwards.

Trading recommendations

The further upmove is expected to face stiff barrier around the current resistance. The index is overbought and the move below 4740 shall ease the buying pressure. Sellers will try to drive prices to the level 4710.