NASDAQ: consolidating near local highs.
- Bullish continuation increasingly likely;
- Stochastic RSI exceed overbought values;
- SMA21 acts as support.
NASDAQ is bullish both intraday and long-term. The hourly chart below points out several factors that can drive the index higher today. Both lines of the Stochastic RSI oscillator dropped from the overbought zone, while the index value went off the recent high slightly. This pattern is common for a sideways consolidation before the uptrend resumes. The Chaikin oscillator is nearing the zero level so the bulls have more room to keep lifting the index value.
One very possible scenario is a test of the 21-hour simple moving average before the bulls take control of the price action again. A potential downside whipsaw could be a good signal to open fresh long positions. We expect NASDAQ to keep rallying. The all-time high at 15,645.60 can be tested once again as the overall technical sentiment is in favor of such a scenario.
R1: 15628.2 (recent peak);
R2: 15645.6 (all-time high)
S1: 15568.9 (SMA21);