NASDAQ Overview and Analysis

The Nasdaq Composite Index is formulated by a capitalization-weighted index of over 3,300 common equities listed on the Nasdaq Stock Exchange. With this being said the index has volatility and can be subject to big swings in market value. This is a good indicator of the overall health in the Nasdaq stock exchange. The IXIC has had two noticeable areas of sideways consolidation that allowed for a better understanding of its resistance levels. 

Nasdaq Composite Analysis

The first hallway of sideways consolidation started in January of 2014 at resistance level 3980.71 and was able to break and sustain above resistance level 5229.12 between August and November of 2016. There is a resistance at level 4576.28 that played a pinnacle role of allowing the index to maintain above and find higher highs. Once the index maintained above this value it was time to find new resistance. The index was in an upward trend and found its next slight level of sideways consolidation between May and October of 2017 that would lead into a re-testable resistance in the future. Shown in Diagram A.

The second hallway of sideways consolidation started in August of 2017 to current date. The resistance level range from 6196.06 to 8164.05. The index has stayed inside of this range with two resistance ranges that define its trajectory. We see slight sideways consolidation between December of 2017 to May of 2018 at a resistance range 6915.45 to 7486.01. Once unable to maintain inside of this range we see our first run to the highest high in august of 2018. With the inability to maintain above this new highest high there is a drastic push to retest the previous slight levels of resistance from October to December of 2019. With volatility on its side the index pushed to retest the bottom of the range at resistance level 6196.06 in December of 2019. With the inability to stay below these resistance ranges the index was on an upward trend to find its true highest high in April of 2019. Shown in Diagram B.

Leading into the current index level. We are at a position to either see higher highs or a retest of previous resistance levels. If the index can sustain above the slight resistance level at 7883.73 we will see a push for a higher high. If the index is unable to sustain above resistance level 7883.73 it will move down to retest a slight resistance level at 7445.48 before attempting to retest resistance level 7271.83. Shown in Diagram C.

*Charts are created with TradingView, our partner in charting.
Written by Nenad Jordanoski, Futures Trader and Technical Analyst.
Risk Warning: Trading on the Financial Markets, Stock Exchange and all its asset derivatives is highly speculative and may not be suitable for all investors. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. Please remember that past performance may not be indicative of future results. Supplied information is not an advice .
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