NASDAQ COMPOSITE-A TECHNICAL UPDATE-18-1-2016

NASDAQ COMPOSITE

CLOSED AT 4488.42 ON 15-1-2016.

                                                                           

SUPPORT:-4419.41/4321/4292.14/4116.60/4074.17/3968/3946.03/3855.07

 RESISTANCE:-4547.31/4567.60/4580.46/4714.80/4871.89/4897.65/4908.66/4960.87/5007.41.

(Figures in bold are important)

It fell down by almost  700 points in last thirteen trading session and in the process it has broken all its short and long term moving averages decisively which speaks of gross weakness in it. Please note that it’s most important benchmark points for the entire year of 2016 are 5007.41, 4897.65 & 4292.14 and it is way below the first two points now and near to the third one. But looking at the overall technical setup it seems that it is a matter of time only but the level of 4292.14 will be taken out for sure and sustained break below this mark may accelerate the fall, going down it will find good support in the range of 4200—3960 whether this range is taken out or not has to seen but looking at present technical setup it is likely to break this range in coming months. However in between relief rallies cannot be ruled out. It will show some strength if it moves and sustain above 4900 levels which may please be noted, chances of which looks slim as of now. It is in down trend now for sure, therefore it is very important to mention here that the threshold level for it entering the bear market is at 4185 and sustained break below this mark may trigger bigger fall this may be kept in mind. Technically it is on a very weak footing therefore it is suggested to avoid long call till it shows some visible strength.   

REMARKS: - The trend is down and in view of the above observation it seems that further fall is ahead therefore long call should be avoided but if initiated should be handled with extreme caution.

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.