The NASDAQ is trading around 27,158 points and is consolidating within a downtrend channel that has been forming since October 20. It is expected to continue rising until it reaches the strong resistance at the Murray 3/8 level or the resistance at the 21-day simple moving average (SMA) at 27,576.
If the uptrend continues, the index could encounter strong resistance just below the Murray 4/8 level and around the upper band of the downtrend channel, at 28,000 points; this zone represents strong resistance, and we could sell with targets at the Murray 2/8 level, around 26,562.
If the price pulls back again in the coming hours to test the strength of the Murray 2/8 support level, around 26,500 points, we could view this level as an opportunity to buy on a technical bounce with targets toward 27,500 and 28,000 points.
The Eagle indicator has reached the 5-point zone, and we believe that another technical rebound—provided the price consolidates above the Murray 2/8 level—will be interpreted as a signal to open long positions.
