Nasdaq reach bottom for now

Since October 2nd, the Nasdaq (and most US Indexes) has been falling to the ground, but will it stop now?
No one knows, but we will certainly give our ideas, about why the fall might stop now or why the fall might continue.
The price has been falling from 7700 down to 6964.03 within 7 or 8 days.

At this point (price 6964.03), the price has been down and tested the MA50 line on the W1 timeframe. Also if we look at the last W1 candle, we see that the price reacted on the MA50 touch. Furthermore it is important to observe that the price did not break through the MA50 line.

Nasdaq reach bottom for now

Nasdaq reach bottom for now

On the Daily Chart (D1) we see the price has crossed the MA200 line, so the price movements today and Monday will indicate if the MA200 line will be broken for real or we just see a MA200 test.
Back in February and April, we had the RSI around 30. Both times, the price was hitting the bottom.
This week, the RSI is at level 30 again so next week we will find out if the market has been oversold on not.

Nasdaq reach bottom for now

Nasdaq reach bottom for now

We are in a situation right now, where the price is testing a very important level and we are considering these two scenarios:
1. in case the price break through the MA200 line on the D1, (The candles will stay below MA200) then we might see a further fall to area 6840-6845.
2. in case the price accept the current support line, then we have reached the bottom and we will see the price to rise again.

Be careful, we might wait till the end of today’s trading session or Monday, before we take action.

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