NASDAQ - Wait for Outside candle breakout!
Updated
NDAQ- Nasdaq has had a great run up since the crash and has also made all time highs. Today, it formed a inside candle on the daily chart and closed at almost the top of the wick (see the chart)
- Break and close outside the range of the outside candle (highlighted with blue zone in the chart) with good volume in either direction will help determine market direction for the next few days. But, also beware of false breakout/fake outs which can happen.
- If NASDAQ starts to fall down from this point, there is a high probability that other markets like DJI, SPX, Nifty etc. will also follow similar pattern
- In current circumstances, i am short term bearish as i think we should see a retrace after such a huge move up. But then we need to be aware of the fact that markets can behave irrationally and our job is to follow the market and not fight against it. Thus, i would happily change my view if i am wrong
Daily RSI -
Nasdaq - 64 (Leaning Bullish)
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Note
Breakout from outside candle happened towards the downside.
We can expect sell off/sideways market for sometime.
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