HomeForex MarketEquities Watchlist: NASDAQ Is Retesting A Resistance Zone

Equities Watchlist: NASDAQ Is Retesting A Resistance Zone

We’re taking a look at a “NAS” at the moment and, no, it’s not the rap icon one who returned to the Grammy’s this yr.

I’m speaking concerning the U.S. composite index NASDAQ, yo!

Try what’s taking place on the each day chart:

NASDAQ Each day Chart

You most likely must squish your each day charts a bit however it’s simple to see that the U.S. composite index NASDAQ has been on a gentle(ish) uptrend since recovering from its 2020 lows.

Heck, the index has been buying and selling above the 100 SMA since late April 2020!

2022 hasn’t been yr for the index, although, because it had pulled again fairly a bit since hitting the 16,000 ranges.

Information of Elon Musk shopping for sufficient $TWTR shares to change into its largest single shareholder helped increase loads of U.S. equities that additionally benefited from a risk-taking temper yesterday.

However can they maintain the bullish momentum this week?

NASDAQ shouldn’t be solely buying and selling beneath the 100 and 200 SMAs, however Stochastic can also be signaling an “overbought” sign simply because the index reached its February and March highs.

Not search for the index particularly because the 100 SMA has additionally crossed beneath the 200 SMA. FYI, the final crossover was in Might 2019.

I’ll be looking out for bearish information that would solidify 14,500 and the SMAs as a resistance zone this week.

For one factor, the Fed’s assembly minutes might reveal a tightening schedule that would spook risk-takers. Broader and longer lockdowns resulting from bigger-than-expected COVID outbreaks in China additionally received’t assist risk-taking within the markets. Final however not least, talks of sanctions on Russia’s oil and gasoline provides might spark extra considerations about international financial progress.

This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails threat. Please learn our Threat Disclosure to ensure you perceive the dangers concerned.

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