Bullish Divergence On NASDAQ
FХ Strategist & Financial Commentator
During yesterday’s trading session, the Nasdaq marked a new bottom around 6650 area before a strong rising acceleration towards 7325. The session ended with a closure nearby 7000 around last week’s bottoms.
Today’s session, anyway, started with a pretty convincing rise, trying to recover yesterday’s tops.
The average true range after setting a new 10 years record around 600 points, seems now ready to begin a slight drop that could favour the NASDAQ through the next days.
Looking at the RSI indicator, we can detect a precise bullish divergence that, considering the huge dimension of the bearish swing and the announcement by the Fed of a new basically unlimited quantitative easing, should represent an excellent bullish signal, at least for the short term.
As always the setup would be activated in case of a breakout of yesterday’s tops around 7325. The stop loss should be placed at 6610 below yesterday’s bottom, while the target price could be expected around 8000.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to Nbh YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.