Trend Lines, Support, Resistance for 10/7
Trend lines drawn from 9/3 (24d), 9/24 bottom (10d), 10/1 (5d) and today 10/7 (1 day).
The Nasdaq recovered nicely today from the previous day sell-off, ending with gains of 1.88%. Volume was lower than previous days, and the candle was inside the previous days highs and lows, indicating some indecision. Otherwise, it was a 76% green body with a great closing range of 87% showing a bullish trend.
There seems to be resistance at around 11400 which was formed from the high volume days on 9/3 and 9/4. I'm adding the October resistance line there to watch what happens over the next few trading days.
Continuing the bullish momentum from the 1d trend would mean a 1.19% gain. This is also where the trend line from the 9/24 bottom points too. That would also break through the new October resistance line. A more sideways move would mean a slight decline of -0.19%, meeting up with the 5d trend line.
Given the volatility over that last few weeks, it's very possible to go back down and meet up with the longer trend line drawn from 9/3. That would mean a -2.44% loss.
The lack of stimulus will no doubt have some impact over the next week or so as companies and the market respond. 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 recovered nicely today from the previous day sell-off, ending with gains of 1.88%. Volume was lower than previous days, and the candle was inside the previous days highs and lows, indicating some indecision. Otherwise, it was a 76% green body with a great closing range of 87% showing a bullish trend.
There seems to be resistance at around 11400 which was formed from the high volume days on 9/3 and 9/4. I'm adding the October resistance line there to watch what happens over the next few trading days.
Continuing the bullish momentum from the 1d trend would mean a 1.19% gain. This is also where the trend line from the 9/24 bottom points too. That would also break through the new October resistance line. A more sideways move would mean a slight decline of -0.19%, meeting up with the 5d trend line.
Given the volatility over that last few weeks, it's very possible to go back down and meet up with the longer trend line drawn from 9/3. That would mean a -2.44% loss.
The lack of stimulus will no doubt have some impact over the next week or so as companies and the market respond. 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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