Trend Lines, Support, Resistance for 10/5
Trend lines drawn from 9/3 (22d), 9/24 bottom (8d), 9/29 (5d) and today 10/5 (1 day).
The Nasdaq got a huge boost today by good news of President Trump's recovery from COVID. That put the index back above the September support/resistance area and well above the 50d MA. With that said, there is still a lot depending on the continued health of the President as well as the passing of new stimulus for the economy.
If today's trend continues, it will be a 0.81% increase. It's likely that the double news (once prior to market open and once during the day) put more energy into the market then deserved. So a minor pullback or sideways move would not be surprising. The 5d trend points to a -0.23% pullback but still above support.
With something more negative occurring, that could bring the index back to the 50d MA or lower. Returning to the longer term trend from the 9/2 top would mean a -2.88% drop.
Things are looking positive, but we are not completely out of the woods yet. I'm keeping the June Support line and the possibility of a future decline to that point on the map. There are only two days (July 1 and 2) filling the gap between June support and July support. A fall below July support would be significant.
The Nasdaq got a huge boost today by good news of President Trump's recovery from COVID. That put the index back above the September support/resistance area and well above the 50d MA. With that said, there is still a lot depending on the continued health of the President as well as the passing of new stimulus for the economy.
If today's trend continues, it will be a 0.81% increase. It's likely that the double news (once prior to market open and once during the day) put more energy into the market then deserved. So a minor pullback or sideways move would not be surprising. The 5d trend points to a -0.23% pullback but still above support.
With something more negative occurring, that could bring the index back to the 50d MA or lower. Returning to the longer term trend from the 9/2 top would mean a -2.88% drop.
Things are looking positive, but we are not completely out of the woods yet. I'm keeping the June Support line and the possibility of a future decline to that point on the map. There are only two days (July 1 and 2) filling the gap between June support and July support. A fall below July support would be significant.
Website: drewby.com
Twitter: twitter.com/drewrobbins
All ideas are for information purposes only. I may or may not invest in the stocks discussed. Before investing in any stock, do your research and trade using your rules.
Twitter: twitter.com/drewrobbins
All ideas are for information purposes only. I may or may not invest in the stocks discussed. Before investing in any stock, do your research and trade using your rules.
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