Nasdaq pulls away from 50-hour moving average
The Nasdaq has made a quick recovery today and is currently trading up about 200 points or 1.08%. The highs have just reached 18486.45.
As shown in yesterday’s video (“What Might Make the Nasdaq Fall Today and In the Future”), yesterday’s low broke above its 50-hour moving average, but fell short of the 38.2% retracement level of the last uptrend at 18222.50. The low reached 18238.16 (about 16 pips above this key target).
In the blog post, she wrote and warned:
If during a correction the price cannot go below the 38.2% retracement level of the last move in the trend, are the sellers the winners? The answer is no. A correction is just a normal condition in a bull market. The buyers are the winners.
Well, yesterday’s low couldn’t break below 38.2% and in today’s trading, today’s low continues to find buyers at the rising 50-hour moving average. That has kept the buyers in control, and they are starting to rethink yesterday’s low. The sellers are still not winning.
The next target will be the high of July 9 at 18511.89. If we break this level, traders will be looking at the all-time high of Wednesday at 18671.07. Note: The highest closing level of Wednesday was 18647.45. This level will also be an upside target if 18511.89 is broken.