25, October 2016

Nasdaq(a 4-hour chart)

General overview

American stocks traded higher on Monday, waiting for the Fed officials’ remarks and ahead of U.S. Manufacturing PMI report.

Current situation

The index held a bullish tone on Monday. Prices returned into an upward channel, approaching its upper limit. Buyers pushed the NASDAQ index upwards towards 4900 through 4865. The index left the 50, 100 and 200 EMAs below. The 100 and 200 EMAs are neutral, the 50-EMA is turning upwards. The resistance is seen at 4900, the support is at 4865.

MACD is in the positive area. MACD grew which confirms the strength of buyers. The RSI is near the overbought area.

Trading recommendations

The price is trending towards 4900. Should this mark be reached successfully, a further extension towards 4940 could be observed further.