27, June 2016

Nasdaq (a 4-hour chart)

Nasdaq (a 4-hour chart)

General overview

When the UK published the first results of the referendum the US stock indices fell by 4-5%. The exit from the alliance is a strong blow to the euro area economy as the UK was the second GDP in the region.

Current situation

The Nasdaq was negative on Friday. All its attempts to recover met a resistance at 4350. The resistance comes at 4300, the support is at 4250.

MACD is in the negative area; its histogram decreased. If the histogram remains in the negative area we will get a sell signal. RSI approached the oversold area. If the oscillator remains in the area that will be a sell signal. The 50-SMA broke the 200-day moving average downwards. The Moving Averages (50, 100 and 200) direction is downwards.

Trading recommendations

If the negative sentiment preserves the index will decrease to 4250 and further to 4200.