NAS100| Is the stock market recovering now? Top down analysis
Let's examine NAS100, first on a weekly timeframe. We see that the index has been in a strong downtrend. Was the bullish impulse that began yesterday breaking a triangle on lower timeframe a sign that the stock market is recovering?
On 16 May 2022 NAS100 bottomed at around 1150 (Y) and then rallied up to test a zone that was broken at around 12945 and 13000. From there the market declined significantly and bottomed few pips closer to 11000. Since then the market had been on a rise and I believe it is going to test the 12945-13000 zone again for the second time.
Around 12945-13000 zone I expect the market to decline again and I believe it will fall to 1150 zone.
Because the market is rising to test the 12945-13000 zone for the second time, sellers seem to lack much strength to push price lower. It is more likely that we will see a strong base around 1150 and 1300, which in the near future if violated to the top it will signal stock market recovery and if violated to the bottom we will likely see another low.
Making 1150 and 1300 as important levels to keep in mind as in the near future we will see these levels being tested again.
On a lower timeframe we see that the index is approaching that 12945-13000 zone and we also see that the index is within a descending channel which I believe at one point in the near future the resistance of this channel will be tested.
I have also attached the chart for Tesla, one of the giant stock companies that influences the direction of the market. Tesla had been trading within a triangle pattern and I believe once a breakout occurs the direction will be determined . We are expecting Tesla report later today which will be for the fiscal quarter ending Jun 2022. Positive report from Tesla will impact Nas100 positively and negative report will do the opposite.
What is your long term bias on NAS100? Are you bullish or bearish? Please share your comments below.
Please do not forget to show your support of this idea with likes.
Trade smart!
On 16 May 2022 NAS100 bottomed at around 1150 (Y) and then rallied up to test a zone that was broken at around 12945 and 13000. From there the market declined significantly and bottomed few pips closer to 11000. Since then the market had been on a rise and I believe it is going to test the 12945-13000 zone again for the second time.
Around 12945-13000 zone I expect the market to decline again and I believe it will fall to 1150 zone.
Because the market is rising to test the 12945-13000 zone for the second time, sellers seem to lack much strength to push price lower. It is more likely that we will see a strong base around 1150 and 1300, which in the near future if violated to the top it will signal stock market recovery and if violated to the bottom we will likely see another low.
Making 1150 and 1300 as important levels to keep in mind as in the near future we will see these levels being tested again.
On a lower timeframe we see that the index is approaching that 12945-13000 zone and we also see that the index is within a descending channel which I believe at one point in the near future the resistance of this channel will be tested.
I have also attached the chart for Tesla, one of the giant stock companies that influences the direction of the market. Tesla had been trading within a triangle pattern and I believe once a breakout occurs the direction will be determined . We are expecting Tesla report later today which will be for the fiscal quarter ending Jun 2022. Positive report from Tesla will impact Nas100 positively and negative report will do the opposite.
What is your long term bias on NAS100? Are you bullish or bearish? Please share your comments below.
Please do not forget to show your support of this idea with likes.
Trade smart!
