Technical Analysis

Nasdaq index moves toward key targets. Not kidding.

50% and 200 hour MA key levels to get through for the bulls

The Nasdaq index has moved to a high today of 6855.59 today.  We currently trade off that level at around 6820. That is still up about 83 points or 1.20%. 

 

Technically, the move higher extended above its 50% retracement of the move down from the December 3rd high.That level comes in at 6838.147.  Above that is the 200 hour MA at 6876.40.  The high today stalled between those key technical levels.  

Looking back December 7th and December 12th the 200 hour MA could not be broken.  That makes the high today potentially a high (from a technical perspective).   Traders who are looking to take profit may be getting ready to exit longs. Be aware.

Drilling to 5-minute chart, the pair has had a steady rise over the last 2 days.  The 100 bar MA has followed the price higher. That MA comes in at 6685.62 and moving higher.  If the price dips below that MA, the bias tilts more to the downside (stay below of course).  

Overall, there is some concern about the high vs the 50% and the 200 hour MA. However, if you see higher levels (want to risk some gains) i.e. even up to the 200 hour MA, the 100 bar MA on the 5-minute chart can be eyed for trading clues.  

ForexLive

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