Dow Jones 30
The Dow Jones 30 market initially fell during the trading session on Tuesday, reaching down to the 25,000 handle. This is an area that should of course offer support as it is a large, round, psychologically significant number, and it looks likely that we will continue to see buyers based upon the hourly chart and the significant bounce that I’m watching. As I record this, we are still negative, but this market has all the hallmarks of one that’s going to go positive during the day, and I think look towards the 25,300-level next.
The NASDAQ 100 has bounced significantly during the trading session after initially selling on Tuesday, and it looks likely that we are going to continue to go higher, perhaps reaching towards the 6900 level, and then eventually the 7000 level. I believe that the US stock markets continue to offer a “buy on the dips” scenario for most traders, and ultimately, I think that the 7000 handle will be broken above, sending the NASDAQ 100 much higher. Ultimately, the longer-term traders will continue to find value in this market, as economic growth and risk appetite continues to be a reasonably healthy. The 6700-level underneath offering support makes sense, because it was such a resistive level in the past. In fact, it signals a “W pattern” on the hourly chart, if you use a little bit of artistic license. Buying short-term pullbacks could continue to be a nice buying opportunity as well, offering the ability to take advantage of a very strong base below.
Dow Jones 30 and NASDAQ Index Video 21.02.18
This article was originally posted on FX Empire
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