The Nasdaq 100 index (NDX) price continues to be observed in a down trending Wyckoff re-distribution trading range. The NDX price broke the support of the previous trading range on Jan 18, 2022 and the downward price move was halted several days later with the selling climax (SC) event.
Here I offer two scenarios for the future NDX price: (1) a bullish scenario, and (2) a bearish scenario.
For the bullish scenario to play out, the NDX price needs to break the closing price on May 25 ($11,935), May 26 ($12,282), and May 27 ($12,665). Failure to do so would invalidate the bullish scenario.
For the bearish scenario, the price would need to reverse then break the trading range support ($11,334). If this were to occur, the NDX would likely find support at around $10,500. Failure to break the trading range support would invalidate the bearish scenario.
Given the strong positive correlation between the NDX and BTC, which can be viewed as a risk-on stock, Bitcoin HODLers will be watching these events play out with great interest. Happy trading!
Wyckoff abbreviations: automatic rally (ARa), selling climax (SC), secondary test (ST), upthrust (UT), failed upthrust (FUT), shakeout (SO), sign of weakness (SOW), upthrust after distribution (UTAD).
This is not financial advice. I am not your financial advisor. This is my opinion.
Here I offer two scenarios for the future NDX price: (1) a bullish scenario, and (2) a bearish scenario.
For the bullish scenario to play out, the NDX price needs to break the closing price on May 25 ($11,935), May 26 ($12,282), and May 27 ($12,665). Failure to do so would invalidate the bullish scenario.
For the bearish scenario, the price would need to reverse then break the trading range support ($11,334). If this were to occur, the NDX would likely find support at around $10,500. Failure to break the trading range support would invalidate the bearish scenario.
Given the strong positive correlation between the NDX and BTC, which can be viewed as a risk-on stock, Bitcoin HODLers will be watching these events play out with great interest. Happy trading!
Wyckoff abbreviations: automatic rally (ARa), selling climax (SC), secondary test (ST), upthrust (UT), failed upthrust (FUT), shakeout (SO), sign of weakness (SOW), upthrust after distribution (UTAD).
This is not financial advice. I am not your financial advisor. This is my opinion.
Note
The rally failed and, therefore, can be labeled as a failed upthrust (FUT). Since the rally failed, the price reversed and we are now in a reaction that will likely test the trading range support at around $11,334. Let's see how the price reacts to the trading range support (e.g., Will it break through the support or bounce off of the support?).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.