NDX has been forming a very interesting pattern since mid-February which is very similar to September-October price action.
First, price formed a small bearish reversal pattern at the highs ( Bearish Double Top in September/ Bearish Head and Shoulders in February) which was followed by a >10% correction to the downside
Following the sharp correction to the downside, price formed a Bullish Double Bottom and then rallied >8% until it retested the neckline of the initial bearish reversal pattern.
If price action continues to follow this pattern then it will first need to hold above the current level (at ~$12700) and then rally to the upside to retest the Head and Shoulders neckline (around ~$13500).
After retesting the neckline of the Head and Shoulders we can look for another deep correction to the downside (around ~$12500).
Let me know what you think in the comments and leave a like if you agree with my analysis! 👍🏽
First, price formed a small bearish reversal pattern at the highs ( Bearish Double Top in September/ Bearish Head and Shoulders in February) which was followed by a >10% correction to the downside
Following the sharp correction to the downside, price formed a Bullish Double Bottom and then rallied >8% until it retested the neckline of the initial bearish reversal pattern.
If price action continues to follow this pattern then it will first need to hold above the current level (at ~$12700) and then rally to the upside to retest the Head and Shoulders neckline (around ~$13500).
After retesting the neckline of the Head and Shoulders we can look for another deep correction to the downside (around ~$12500).
Let me know what you think in the comments and leave a like if you agree with my analysis! 👍🏽
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