Nasdaq Fractal, next wave down?

So far the Nasdaq is moving according to the fractal i highlghted in my previous analysis. Of course the small waves are not always identical but so far when we zoom in, we can see it is very similar. At the moment it looks like the H&S is becoming the same as well. So we can expect a small move up during opening and from there on we should start to drop again. Whatever happens, it should not get above the 7240ish (max of 7280) for the fractal to stay valid.

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Previous analysis:
www.tradingview.com/...ng-for-another-drop/

Bình luận:

It's almost following the fractal to the point. It's already below the neckline so we will probably drop towards the 6800/6900 area. Read my previous analysis for more information.
It should not get above the first red zone, so i would move stops towards those levels.

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Asian stock market went up during the day which moved the Nasdaq future up as well. No big move, but it is starting to look like the H&S has become invalid. Opening of US markets is in 15 min. So we will get to see the real direction, usually happens after the first half hour of opening. As long as the price stays below that first red resistance zone and that trend channel, we can assume we will drop again. If we get a quick drop the H&S might still be valid, if if goes slow, something else is probably going on.

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The fractal has changed a as we saw yesterday, but since it has dropped today again it seems it's still following it's path, but just using some different footsteps. I added the green circles and that channel as well.

Bulls did try to push through that resistance line, did several attempts but all of them failed. According to the fractal we should see a significant drop today. Still at the support of that trend line, but if that breaks (just like the fractal) we could see that acceleration later today.

Bình luận:

It accelerated down as expected but it bounced up quite strong as well but it is still below that trend line. While writing this the price got rejected from that trend line.

If the the bulls can push it back into that channel, it will become very likely that it will test the upper side of that channel as well. If they can not push back in, we can assume we will make another drop again and probably break today's low again.

Bình luận:

So the bulls fought back today and pushed the price back into that channel again, triggering that inverse H&S i posted in the previous update. As mentioned, it tested the upper side of that channel, even broke it slightly. So there might be more upside action tomorrow, will depend on what the futures will do until opening tomorrow. If they make a strong upwards move tomorrow as well, there is a big chance the low is already said. Because a double bottom formation could be formed.