End of Nasdaq Uptrend
Published On: 25 April 2022, 11:30 AM | Jeraldine Tan, Senior Dealer
- Nasdaq has enjoyed a strong rally since 2020 and finally market has come to senses from the overvaluation and have transitioned from strong uptrend to a now sideways market with bias to downside – lower lows and lower highs.
- The 13,000 big round number level seems to be a strong support where we saw price retested in May2021 and most recently retested again in Mar2022. So likely when market trade down to this level, traders can set up good risk reward trades.
- At this 13,000 level, price will be at the bottom of the range. A range trade position could be entered into by neutral traders on the formation of a small double bottom neckline break. Bullish traders may also wish to take this entry point to start building a position.
- With economy opening up, money will start to rotate back into traditional income/value stocks and overvaluation of tech will cool down which we have already seen signs of. So bearish traders can prepare for a break of the 13,000 support line (3rd touch) which they can then enter with trend on a break of a lower low (wait for a pullback) for a good risk reward setup.
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