The Nasdaq 100 is down for four consecutive days, which is rather unusual nowadays. On Tuesday, it was down 1% to trade at 13,680 USD, levels last seen on April 8th.

It looks like a larger correction could be upon us if the Nasdaq index closes below the 13,700 USD support. The topping formation looks like a triple top pattern, and with the index already below the neckline of this pattern (13,700 USD), the bearish momentum could intensify. 

The formation’s potential is nearly 400 USD, which puts the target at 13,300 USD, where the next key support of previous highs is located. 

Alternatively, if the Nasdaq 100 jumps back above the 13,700 USD level, it could be a false breakdown pattern, which is a bullish formation. 

Everything should be decided with today’s daily close, but considering the Wall Street has been bearish over the previous days, the selling might continue throughout the day, confirming the topping formation.

Source: https://www.axiory.com/technical-analysis/nasdaq-at-1-month-lows

Share.

About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

Comments are closed.