The NASDAQ Composite has seen some wild action over the last couple of months. From a precipitous fall ending on Christmas eve to a rally that just won't quit.
Back in October 2018 I started sounding the warning horns that a long-term correction was probable. Almost all stocks I cover at Trendy Stock Charts are off their all-time highs, some more than others. But the gloom and doom that was shaping up in October through December has seen a rally that has lasted more than 10 weeks in a row now. That is, until last week.
Daily NASDAQ Chart
This first chart for the NASDAQ Composite (Comp) is a 1 year daily candlestick chart. I start off looking at a shorter-term perspective to see if there is any more momentum behind the rally. I use 2 different Fibonacci Extension Tools to calculate a potential topping area.
It appears another 5-7% could be in order before stiffer resistance is seen. It does not appear at this time that the NASDAQ will make another all-time high before the rally fades. However, another all-time high is not out of the question. The possibility for another all-time high would be determined during the correction from the current rally.
Now take a look at the MACD Histogram. It saw its first bout of selling momentum at the end of the rally during last week's correction. The first sign of selling momentum during a motive wave tends to identify Wave 4 of the wave. So while the NASDAQ may have another few percentage points to run, the rally may be close to over. The weekly candlestick chart for the NASDAQ helps build my case. Let's take a look at it now.
Weekly NASDAQ Chart
This next chart is a 5 year weekly candlestick chart for the NASDAQ Composite. A weekly candlestick chart helps to identify trends a little easier than a daily candlestick chart. On this weekly chart I point out a Bearish Engulfing candlestick pattern that developed…….
If you want to continue reading this article for the NASDAQ Composite, you must first login.
I look at an upside price target range where I believe the current rally will end. I base my belief by using several different Fibonacci tools and Elliott wave analysis.
If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.