Trend Lines, Support, Resistance for 10/8
Trend lines drawn from 9/3 (25d), 9/24 bottom (11d), 10/2 (5d) and today 10/8 (1 day).
The Nasdaq took a rest today, relative to the last few days. A nice gain of 0.5% was fairly maintained throughout the day. Most of the action was within the 37% body and shows in the middle closing range was 57%. VIX also declined 6% as a result of the tighter price range across equities. Volume was lower than the previous two days.
Continuing the bullish momentum from the 5d trend would roughly follow the trend from the 9/24 bottom as well. That would be a +1.02% gain. If the 1d trend continues, that would point to a small -0.22% loss and still align with sideways movement across the October Resistance area.
The trend from 9/3 continues to move to an upward direction. If news were to cause a pullback, the index would likely find support at the 50d MA and meet up with that longer trend line for a -2.48% loss.
Stimulus is still not certain, although discussions are back on the table. The discussions could cause additional volatility. 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 took a rest today, relative to the last few days. A nice gain of 0.5% was fairly maintained throughout the day. Most of the action was within the 37% body and shows in the middle closing range was 57%. VIX also declined 6% as a result of the tighter price range across equities. Volume was lower than the previous two days.
Continuing the bullish momentum from the 5d trend would roughly follow the trend from the 9/24 bottom as well. That would be a +1.02% gain. If the 1d trend continues, that would point to a small -0.22% loss and still align with sideways movement across the October Resistance area.
The trend from 9/3 continues to move to an upward direction. If news were to cause a pullback, the index would likely find support at the 50d MA and meet up with that longer trend line for a -2.48% loss.
Stimulus is still not certain, although discussions are back on the table. The discussions could cause additional volatility. 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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