Nasdaq monthly chart? What is it saying

Nasdaq monthly chart

Nasdaq Monthly Chart Outlook

Dec 25, 2022

If the markets follow the projected path from October, a test of the 9,900 to 10,500 ranges will probably mark a bottom. In other words, if they follow the 1973-74 pattern, a test of the above ranges will make for an enormous opportunity (the purple support line in the 1st part of the chart). Will the Nasdaq follow this path; nothing is written in stone. However, if it were to happen, it would provide a mouth-watering opportunity for Tactical Investors. Market Update September 11, 2022

The above objectives were satisfied. It dipped to the low 10K ranges and held. Shortly after that, it reversed course and started to trend higher. In November, the Nasdaq experienced two blistering rallies, so it is now paving the way for a test of the 12,300 to 12,600 range. There is a good chance that a close at or above 12,600 will pave the way to take out its Aug highs.

nasdaq chart

Other excerpts from recent issues prove that it pays to buy the fear

While it looks like the Dow lost a lot of weight, it shed less than 700 points since the last update. On August 9, it was roughly at 32,800. Risk takers should have opened up longs. Market Update August 27, 2022

Short term, the markets are entering a corrective phase; the SPX has hit short-term targets. Former support points turned into resistance which should turn into zones of support again, albeit on a short-term basis. The likely pullback targets fall in the 3960 to 4020 with a decent chance of overshooting as low as 3870. Market Update August 2, 2022

It traded as low as 3,886, so it traded below the low end of the official suggested range by roughly 70 points. The markets should continue rallying as the selling pressure is easing, bearish readings are high, the masses are unsure, and the dollar is close to putting in a short-term top. Market Update September 11, 2022

Risk takers should continue holding until the Dow tests the 33,600 to 34K ranges and the Nasdaq trades to 13,500. At that point, all the higher-risk positions opened should be closed. You can also modify this trade in line with your trading style. Market Update September 11, 2022

FAQ

Q: What is the projected path for the markets from October?
A: The projected path suggests a potential test of the 9,900 to 10,500 ranges, marking a bottom if following the 1973-74 pattern.

Q: Will the Nasdaq follow this path?
A: There is no certainty, as nothing is written in stone. However, if it were to happen, it could present an opportunity for Tactical Investors.

Q: What were the recent objectives and outcomes?
A: The markets dipped to the low 10K ranges, held, and then reversed course. In November, the Nasdaq experienced two strong rallies, paving the way for a potential test of the 12,300 to 12,600 range.

Q: What does recent data suggest about market behaviour?
A: Recent data indicates that buying during fear has proven beneficial. Despite the appearance of a significant drop, the Dow only shed less than 700 points since the last update.

Q: What is the short-term outlook for the markets?
A: The markets are entering a corrective phase, with the SPX hitting short-term targets. Former support points have turned into resistance, which may become support zones again on a short-term basis. The likely pullback targets range from 3960 to 4020, with a possibility of dipping as low as 3870.

Q: What was the market reaction in September?
A: The market traded as low as 3,886, falling below the suggested range by approximately 70 points. However, a continued rally is expected with easing selling pressure, high bearish readings, uncertain sentiment, and the dollar nearing a short-term top.

Q: What is the recommended approach for risk-takers?
A: Risk takers should continue holding positions until the Dow tests the 33,600 to 34K ranges and the Nasdaq reaches 13,500. At that point, it is advisable to close higher-risk positions or adjust the trade based on individual trading styles.

Other Articles of Interest

stock market psychology books

Stock market psychology books

Exploring the Benefits of Reading Stock Market Psychology Books May 17, 2023 What is Stock Market Psychology? Stock market psychology ...
Read More
crude oil exploration

Crude Oil Exploration

Crude Oil Exploration: Unveiling the Depths of the Black Gold May 17, 2023 Introduction: A Journey into the Depths Crude ...
Read More
is Petroleum a Fossil Fuel

Why is Petroleum a Fossil Fuel?

Introduction May 16, 2023 Have you ever wondered why we call petroleum a fossil fuel? You may have heard of ...
Read More
stochrsi

Demystifying StochRSI strategy

StochRSI for Effective Trading Strategies May 15, 2023 As a trader, you are always looking for tools that can help ...
Read More
Texas tea

What is Texas Tea?

Texas Tea: The Fascinating Story Behind America's Black Gold May 15, 2023 Crude oil has been an integral part of ...
Read More

Mob Mentality Psychology: Turning Negativity into Opportunity

 Mob Mentality Psychology: Why Misery Loves Company Updated May 13, 2023 We regularly update our articles, and the latest update ...
Read More
Dow Theory - Secrets of the Stock Market

Dow Theory: Unlocking the Secrets of the Stock Market

Introduction to the Dow Theory May 12, 2023 The Dow Theory, developed by Charles Dow in the late 1800s, is ...
Read More
Understanding the Housing Market Cycle

Understanding the Housing Market Cycle

 Introduction May 9, 2023  The housing market is an essential part of the economy that impacts both homebuyers and sellers ...
Read More

Investment Emotions: The Psychology of A Market Cycle

The Psychology of Market Cycles:  Deciphering The Trend May  7, 2023 As investors, we all know that the stock market ...
Read More
trading psychology books

Trading Psychology Books: The Key to Success in the Stock Market

Trading Psychology Books: The Ultimate Guide to Mastering the Art of Trading May 4, 2023 Despite using the best trading ...
Read More
Stock Market Psychology Chart

Stock Market psychology chart: Unlock Your Trading Potential

Title: The Stock Market Psychology Chart: Understanding the Emotions Behind Market Movements May 4, 2023 Stock market investing is a ...
Read More
market psychology chart

Market Psychology Chart: Tips for Informed Investment Decisions

Market Psychology Chart: What is it and How Does it Work? May 3, 2023 The stock market offers thrilling and ...
Read More
Benefits of Contrarian Thinking

Contrarian Thinking: The Power of Challenging the Status Quo

Benefits of Contrarian Thinking May 3, 2023 Today, we will talk about contrarian thinking, a powerful tool for decision-making that ...
Read More

Define Contrarian Thinking: Challenging the Norms for Success

Contrarian Thinking: How to Challenge the Status Quo and Succeed May 3, 2023 Contrarian thinking is a mindset that involves ...
Read More
stock market psychology

Mastering Stock Market Psychology: Neutralizing Emotions & Biases

Stock Market Psychology: Understanding Emotions & Cognitive Biases May 2, 2023 Stock market psychology refers to the mental and emotional ...
Read More
Japanese Yen

Investing in the Japanese Yen: A Rising Sun Currency Guide

Unveiling the Japanese Yen: An Introduction to the World's Third-Largest Economy May 1, 2023 One of the most traded currencies ...
Read More
What is Relative Strength in Investing

What is Relative Strength in Investing? A Beginner’s Guide

What is Relative Strength? Understanding the Basics April 30, 2023 Relative strength (RS) is a widely-used technical analysis tool essential ...
Read More
3D printed organs: the future of medical technology

3D printed organs: the future of medical technology

Revolutionising Healthcare: The Promising Future of 3D  Organs Apr 29, 2023 The notion of 3D-printed organs is no longer a ...
Read More
Power of Contrarian Investing

Think Different: The Power of Contrarian Thinking in Investing

Apr 28, 2023 The Power and Pitfalls of Contrarian Investing Investing can be a tricky business, but one approach that ...
Read More
death of education

Surviving the Death of Education: Navigating the New Age of Learning

The Death of Education: AI Disrupting the Landscape April 27, 2023 As AI and language generation models continue to advance, ...
Read More
disciplined investor

The Disciplined Investor: A Guide to Enduring Trading Success

 The Pursuit of Duality in Trading April 24, 2023 A duality of purpose is necessary to pursue enduring success within ...
Read More