This article is a NASDAQ Composite breakout update. The breakout from the NASDAQ's 15 Year Cup With Handle chart pattern continues toward the price objectives I established back in this article "2/11/2017 – NASDAQ Composite (COMP) 15 Year Cup With Handle Chart Pattern". In that article, I mentioned that

There are Fibonacci Extension Tools that start to converge around the 7,000 price area. Very interesting.

I had an update on the NASDAQ in April 2017 also. In that update I mentioned that it was still ok to buy the dips. But with some added market volatility recently, I feel its time for another update on the index and its progress towards my longer-term price targets.

NASDAQ Composite Breakout Update

This NASDAQ Composite Breakout Update is going to begin with a long-term chart. The long-term chart is a 20 year monthly candlestick chart to measure the progress of its breakout. This is the same chart I used in the February 2017 article linked above.

The index has achieved great progress towards my initial price target of 7,000. Also, in the April 2017 article linked above, I discussed the possibility of a 8,000 estimated price target. The 161.8% Target Line from the black Fibonacci Extension Tool seems like a reasonable target from a breakout of a 15 year Cup With Handle chart pattern, doesn't it?

So while the index is still in the process of its breakout, it has definitely become a little more volatile over the last couple of weeks. Greater volatility, after an extended breakout, could indicate that the uptrend is ready to correct or consolidate for a period of time.

The MACD Histogram is showing that the buying momentum has been slowing down. That could be another indicator that the uptrend is near a top for now. However, I usually do not get too worried until I see at least…...

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I review the progress towards the approximate 7,000 target price I previously calculated for the NASDAQ. I look at additional possibilities for upside price targets and also review support areas below the index's current price level.

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