NASDAQ seems to be still unfolding a lower degree Wave 2 towards 11900 mark, before reversing lower again. The indice remain in control of bears after printing 12466 highs early September 2020. It has dropped through 10921 levels, barely away from initial support at 10854 levels.
NASDAQ probable wave counts are as follows: The indice had earlier terminated its larger degree Wave ((4)) through 6629 lows in March. Since then, the indice has clearly remained in control of bulls and managed to carve a series of higher highs and higher lows towards 12466 mark.
If the above proposed structure is correct, a potential larger degree Wave ((5)) might have terminated around 12466 levels on September 01, 2020. If correct, NASDAQ might be in for a larger degree corrective drop in the next several weeks.
Also not that the indice has dropped below its immediate line of support and entered into the sell zone. The most probable structure from here should be to sell on rallies towards the back side of trend line which would act as resistance here on.
Looking into the lower degree wave counts, the drop between 12466 and 10921 is an impulse wave. It could be marked as a lower degree Wave 1. Ideally, Wave 2 should rally towards 11900 levels, which is fibonacci 0.618 retracement of the earlier drop.
Traders might be preparing to initiate fresh short positions around 11900 mark with stop above 12500 and projected targets below 6609 levels over the next several weeks.
Technical Analysis Team
Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.