Technical outlook:
The NASDAQ rose above the 12,175 highs on Monday before finding resistance and pulling back. The index closed lower at around 12,000, indicating a probability of a continued correction for the next few days. Bulls will be poised to hold prices above the 11,090 interim support to keep the near-term structure intact. Near-term upside potential remains through 12,900.
The NASDAQ has been dropping since November 2021 after printing all-time highs at around 16,764. Since then, prices collapsed over the next several months to 11,090. A high probability remains for a three-wave corrective pullback that could push the price up to 14,75 in the next several weeks.
The NASDAQ has initiated a potential lower degree upswing since June 16, 2022, after printing the 11,090 lows. Further evidence is required to confirm that a bottom is in place and a break above 12,900 will encourage bulls. Traders might be preparing to cautiously hold long positions against 11,000 going forward.
Trading plan:
Potential rally through 12,900 and up to 14,575 against 11,000
Good luck!
