The Nasdaq index continues to display remarkable resilience amidst a prevailing bullish trend, which currently appears to be more of a consolidation phase reinforcing the upward structure. Prices maintaining their position above the primary trend line signal that selling pressure is limited and has not been able to reverse the trend’s direction. The positive sentiment surrounding the technology sector remains strong, driven by investor confidence in growth prospects and solid earnings reports from several large corporations.
Technically, the signals for strengthening are still clearly visible via the combination of the Zigzag indicator and Moving Averages (MA), both indicating an upward trajectory. As long as prices remain above the minor channel support area, the chances for a continued rally are still wide open. Increased buying activity during tonight’s US session underscores that buyers are still dominant, with any price corrections seemingly leveraged as opportunities to re-enter the market.
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Moreover, the price bounce from the lower Bollinger Bands (BB) indicates the potential for a healthy continuation of the upward rebound. The expanding upward direction of the BB signifies a strengthening bullish momentum, while the positively moving MACD indicator confirms that buying pressure remains robust. With this solid technical support, the Nasdaq is poised to sustain its strengthening trend and could potentially test the nearest resistance level around 26,137 in the near future.
Technical Reference: buy as long as it remains above 25,895
Potential Take Profit 1: 26,080
Potential Take Profit 2: 26,137
Potential Stop Loss 1: 25,955
Potential Stop Loss 2: 25,895
