Hi Traders! NASDAQ short-term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
NASDAQ H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Double Wave Correction, RSI Indicator, Stochastic Oscillator, Two Strong Resistance Zones
On the H4 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs and, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction is happening in the form of potential double wave to the upside. Also, we could see the price has created a bearish divergence between the first high that has formed on 24th August 2023 and the second high that has formed on 30th August 2023 based on the RSI indicator. We may consider these as signs indicated by the market that the buyers are losing control and the sellers are currently having the upper hand. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme (80 level) which we may consider as another sign favouring the sellers. In addition to this, currently there are no signs opposing this short term bearish view. So based on all this, until the two strong resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further after pullbacks.
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team.
