COMP – NASDAQ Composite

This 1 year daily candlestick chart shows that the NASDAQ did not break below the 7,023.62 watch level I previously mentioned. The index has since made a new high. Even though my chart does not show volume, when I look at daily volume for the NASDAQ over at Investors Business Daily, I see buying volume has been increasing over the last week. Because of that activity, it has confirmed it is back in an uptrend.

I placed a Fibonacci Extension Tool on the chart to calculate the new high breakout level. The 100% Target Line usually provides for a trading opportunity on the way to the 161.8% Target Line, or the golden ratio of the uptrend.

Upon reaching the 161.8% Target Line, or the 8,391.24 price level, you may want to eliminate all new purchases and focus on market action and if trimming shares is more appropriate than purchasing shares. Until then, continue trading and holding to the upside.