19, October 2016

Nasdaq(a 4-hour chart)

 General overview

Wall Street opened higher fallowing the positive Consumer Price index. Investors keep weighing up corporate earnings reports.

Current situation

NASDAQ held a bullish tone yesterday. The index continued moving higher, breaking above the previous day’s top. The price broke the level 4835 and was able to extend its gains towards 4848 where the bullish spike faded and NASDAQ rolled back. The 100-EMA stopped the upward momentum. The price bounced off the moving average and headed downwards below the 50-EMA. The 100 and 50 EMA direction is downwards. The 200-EMA is moderately bullish. The resistance is seen at 4850, the support is at 4800.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. The RSI oscillator moved upwards.

Trading recommendations

The index remained in a broad range descending channel. The price tested its upper boundary on Tuesday. A break above the line will indicate that the negative sentiment is over. In this potential scenario, buyers will lead the price to 4865.

If the price fixates below the level 4835 NASDAQ may return to a decline.