27, October 2016

Nasdaq(a 4-hour chart)

General overview

Wall Street opened lower on Wednesday as Apple disappointing earnings and weaker oil prices dragged the shared down. The market will be focused on Boeing and Coca-Cola Company earnings reports in the coming sessions.

Current situation

The sentiment remained negative in the market. The bearish momentum was strong enough to push the price lower on Wednesday. The NASDAQ index broke 4865 and headed towards 4835. The price is approaching the neutral 100-EMA which may slow down its weakening. The 100 and 200 EMAs are neutral, while the 50-EMA is heading higher.  The resistance is seen at 4865, the support is at 4835.

MACD is in the positive area. The histogram decrease which indicates the buyers’ positions weakening. RSI oscillator is heading north.

Trading recommendations

The level 4835 remains the key support area to watch for. A bearish continuation through 4835 should lead to a continued slide, with 4800 as the first probable target. On the other hand, a return above 4865 will neutralize our near term negative outlook.