Last week closing price triggered a SHOOTING STAR ( BEARISH SIGNAL)
Ongoing downside price action is showing the Nasdaq 100 coming back again the clouds support area !
NEXT SIGNIFICANT SUPPORT IS AT 14’105 IN THIS WEEKLY TIME FRAME…
Only a sustainable recovery above the KIJUN-SEN @ 14’855 (weekly closing basis) would neutralise this ongoing downside move.
The 38.2% Fibonacci retracement @ 14’380 has roughly been reached yesterday (low being @ 14’394.75 !)
The Mid Bollinger band (my barometer) has also been briefly broken but the Nasdaq managed at the end of the previous session to close @ 14’505, slightly
above the MBB @ 14’417…
So what next ?
Well, if the Nasdaq 100 is able to hold above the Mid Bollinger Band (14’463) and we will see a recovery attempt which should move and hold on a daily closing basis above the top of the daily clouds @ 14’855 which is, also by the way, the level of the WEEKLY KIJUN-SEN, meaning a very, very important level which should not be underestimated !!!
A successful recovery above that level would get a break and would potentially open the door for the new downtrend line resistance, currently @ 15’123 ahead of a retest of former high @ 15’268
A failure to close, on a daily basis, above 14’463 would add increase the risk for further downside towards the 50% Fib ret @ 14’105 & Kijun-Sen, ahead of the bottom of the daily clouds, currently @ 13’925, slightly above the 61.8% Fib ret @ 13’831
4 HOURS (H4)
LAGGING LINE in the clouds…
A sustainable recovery above the TS @ 14’628 would be the first positive signal for a short term recovery in this H4 time frame, which as long as it is not confirmed by a bullish divergence should still be seen as a corrective move only…
1 HOUR (H1)
Currently far below the clouds !
Nevertheless, a “shy” RSIbullish divergence triggered such kind of stabilization in this H1 time frame which is materialized by the current sideways/up price action.
Watch MBB (14’508) in resistance ahead of the Kijun-Sen @ 14’618 as breakout confirmation for further upside.
The latter level of 14’618, corroborating the H4 TS level !!!
Ironman8848. – Jean-Pierre Burki
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