The low price in the NASDAQ this week stalled at 14,784, just above the 200-week moving average, which currently sits at 14,616.37. Notably, this isn’t the first time that level has attracted support — in 2023, a similar dip found buyers just ahead of the same long-term average. The key difference then was the added support from the 50- and 100-week MAs, which aren’t in play this time around.
This week’s bounce has been constructive, with the price rebounding strongly and pushing back above the 100-week MA, now at 16,299.86. That level becomes an important support pivot — holding above keeps the recovery bias intact.
However, one technical objective that was not achieved was a sustained move above the 38.2% retracement of the decline, which comes in at 16,854.68. That level — much like the 100-week MA — will be pivotal going forward. Bulls need to break and hold above it to strengthen the case for a broader upside recovery.
Bottom Line
The market avoided a deeper breakdown this week, and buyers held where they needed to. Reclaiming the 100-week MA is a positive signal. The gain of 6.87% currently is the best since a gain of 8.10% during the week of November 7. But to flip the script decisively, the price needs to clear and hold above 16,854.68. Until then, bulls have a foothold, but not a firm grip.
This article was written by Greg Michalowski at www.forexlive.com.The low price in the NASDAQ this week stalled at 14,784, just above the 200-week moving average, which currently sits at 14,616.37. Notably, this isn’t the first time that level has attracted support — in 2023, a similar dip found buyers just ahead of the same long-term average. The key difference then was the added support from the 50- and 100-week MAs, which aren’t in play this time around.This week’s bounce has been constructive, with the price rebounding strongly and pushing back above the 100-week MA, now at 16,299.86. That level becomes an important support pivot — holding above keeps the recovery bias intact.However, one technical objective that was not achieved was a sustained move above the 38.2% retracement of the decline, which comes in at 16,854.68. That level — much like the 100-week MA — will be pivotal going forward. Bulls need to break and hold above it to strengthen the case for a broader upside recovery.Bottom LineThe market avoided a deeper breakdown this week, and buyers held where they needed to. Reclaiming the 100-week MA is a positive signal. The gain of 6.87% currently is the best since a gain of 8.10% during the week of November 7. But to flip the script decisively, the price needs to clear and hold above 16,854.68. Until then, bulls have a foothold, but not a firm grip.
This article was written by Greg Michalowski at www.forexlive.com. Read MoreTechnical Analysis
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