<\/p>\n
Nasdaq (NDX) has been trading sideways since November 10, with the 1D MA50 (blue trend-line) as Support and the 1D MA100 (green trend-line) as Resistance. On a wide scale, this technically looks like the previous two market tops on the January 05 Lower Highs trend-line, and the 1D RSI illustrates that clearly. However, the Jul 19 – 28 consolidation within the 1D MA50\/100 zone, did make a higher extension, so it is best to stay on the sidelines until we have a clear, confirmed break-out signal.<\/p>\n
As long as the price remains within the 1D MA50 and 1D MA100, short-term traders can scalp the range. Since the January 05 Lower Highs trend-line is getting closer and closer to the 1D MA100, there is high risk in taking a buy break-out trade there. As the 1D MA200 is unbroken since April 05, it is best to take the break-out buy if a 1D candle closes above the 1D MA200 (orange trend-line), which would be also a break above the 0.618 Fibonacci level and target the 1W MA100 (red trend-line), which would be also a test of the 13,760 August 16 High.<\/p>\n
On the other hand, a 1D candle close below the 1D MA50, would be bearish targeting 10850 and quite possibly aiming at a new (Lower) Low.<\/p>\n
Notice that the 0.618 Fibonacci level is a critical Resistance level as it is where Nasdaq topped both on the March 29 and August 16 Lower Highs.<\/p>\n
Also notice that the 1W MA100 is where the August 16 High was rejected.<\/p>\n
Tradingview link:<\/p>\n