Tomasz Wisniewski
Axiory Global Ltd.
The carnage on the market continues. Yesterday, stocks recorded quite a terrible day and most of them managed to secure the new, mid-term lows. In today’s analysis we’ll focus on the Nasdaq, which in its drop, is very technical.
If you’re buying stocks on the Nasdaq itself, probably you’re not enjoying the latest route, but if you’re a technical trader and you’re going with a bearish trend than you must be delighted.
What’s great about the price action of the Nasdaq is how it respects the Fibonacci levels. So, the top of the trend was in November and since then we’ve had a bearish correction, or a new bearish trend if you will.
Since February, the price has started to respect Fibonacci retracements with great accuracy, which is only growing with time. Since April, the price has been pretty much only respecting Fibo: 38,2% (green) and 50% (blue). Most recently, the Nasdaq managed to break 50% and drop lower. The natural target for this movement is the 61,8% Fibonacci. Chances that we’ll get there are quite high.
It’s worth mentioning that all of this is happening inside of the wedge pattern (red lines) and the breakout of the upper line can be a first stage to a major buy signal. Current sentiment stays negative and most probably, the Nasdaq will test the 61,8% Fibo soon.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended content
Editors’ Picks
AUD/USD: There is room for further losses near term
AUD/USD resumed its weekly retracement and slipped back below the 0.6900 support to print multi-day lows against the backdrop of the intense move higher in the US Dollar on Thursday.
USD/JPY climbs above 147.00 as bulls target Kumo
The USD/JPY edges higher on Thursday, climbs above 147.00 for the first time since September. The financial markets narrative hasn’t changed, as traders hear war drums beating, as the Middle East conflict escalates, triggering a flow to haven currencies, boosting the Greenback.
Gold price rebounds to $2,650 as Middle East conflict escalates
Gold price recovers in the mid-North American session on Thursday after hitting a daily low of $2,638. The golden metal rose on rising fears over the Israel–Iran conflict along with a stronger US Dollar. In addition, bets that the Federal Reserve will ease policy aggressively faded and boosted US yields.
Ethereum investors brace for heightened volatility as US election approaches
Ethereum is down over 4% on Thursday as traders expect high volatility with the US elections approaching. The election results could spark a massive price movement in ETH due to regulatory hurdles the DeFi ecosystem has yet to overcome.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.