NASDAQ | Parabolic Curve | V-Shape Recovery | Blow-Off Top
Todays Chart – Nasdaq 100 Index – Trading in blue-sky territory respecting the parabolic curve.
Points to consider:
- V-shape recovery
- Respecting parabolic formation
- Bullish trend- consecutive higher lows
- Fibonacci extension target approaching (4.236)
- RSI above 50
- RSI bearish divergence
- Multi confluence support (200 EMA + .618 Fibonacci retracement + structural support)
Conjuring a V-shaped recovery, NDX is looking to put in a blow-off top as the finale to what has been quite the euphoric bull run.
Despite the 30% market crash, NDX continues its higher low projection, respecting the parabolic formation as it approaches the 4.236 Fibonacci extension target.
The RSI is above 50, showing strength in the market immediate market, however, there is a technical bearish divergence indicating weakness in the forthcoming months.
Historically, NDX has retraced to the 200 EMA during bear markets which is indicative of a reversal to the 200 EMA being eventual. Furthermore, the .618 Fibonacci retracement (pulled from the 4.236 extension) is in confluence with structural support, thus a retrace to the support zone is probable.
Overall, in my opinion, Nasdaq needs to put in reversal price action (lower highs, lower lows) to validate a short trade to the technical target below.
Points to consider:
- V-shape recovery
- Respecting parabolic formation
- Bullish trend- consecutive higher lows
- Fibonacci extension target approaching (4.236)
- RSI above 50
- RSI bearish divergence
- Multi confluence support (200 EMA + .618 Fibonacci retracement + structural support)
Conjuring a V-shaped recovery, NDX is looking to put in a blow-off top as the finale to what has been quite the euphoric bull run.
Despite the 30% market crash, NDX continues its higher low projection, respecting the parabolic formation as it approaches the 4.236 Fibonacci extension target.
The RSI is above 50, showing strength in the market immediate market, however, there is a technical bearish divergence indicating weakness in the forthcoming months.
Historically, NDX has retraced to the 200 EMA during bear markets which is indicative of a reversal to the 200 EMA being eventual. Furthermore, the .618 Fibonacci retracement (pulled from the 4.236 extension) is in confluence with structural support, thus a retrace to the support zone is probable.
Overall, in my opinion, Nasdaq needs to put in reversal price action (lower highs, lower lows) to validate a short trade to the technical target below.
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