NASDAQ COMPOSITE ( A TECHNICAL VIEW) 5-4-2015

NASDAQ COMPOSITE

CLOSED AT 4886.94 ON 2.4-2015

The long term up-trend in Nasdaq is intact and it is looking reasonably good on the technical chart at present, although now it is running below its short term moving average range which is between 4930---4906 for 6-4-2015( it changes every day with price movement) but it is well above its  critical and very important points of 4814.95 / 4760.24 & 4736.05 and these points are valid for the year 2015. It has to sustain above these points to remain buoyant. Furthermore it is also above its long term moving average range of 4745--4598(it changes every day with price movement and now it is moving up) therefore as long as it holds 4736 marks it is ok. Please note that break below 4736 mark and upper band of the long term moving average ie 4745 will threaten the long term up-trend and break below the lower band of the averages ie 4598 and  consistently trading below that mark will end the up –trend. Kindly keep this thing in back of your mind.

I would like to mention here that Nasdaq made all time high of 5132.50 fifteen years back on 10-3-2000 and it made recent high of 5042.14 on 20-3-2015. Please note that it came pretty close to the all time high but could not cross it even after 15 years, since it failed to cross the previous top after such a huge time gap so it can be construed that proper top is already in place at 5042.14. However if it has to regain the  up momentum again  then it has to cross 5042.15 first and eventually to cross the all time high of 5132.50 for fresh robust round of up move, chance of which are not looking too great at this point of time but it is not weak as yet.

In overall technical view it seems that it is range bound now and in coming days it will decide which way to move, therefore it is suggested to respect the above mentioned levels and act accordingly. My bias is neutral now  and I  would wait for proper signal  to initiate any trade on the long or on the  short side.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.