Dow Jones 30

The Dow Jones 30 has fallen during most of the week but found enough support underneath at the 20 SMA in the Bollinger Bands indicator on the weekly chart to turn around and form a hammer. The hammer sits just above the 25,000 level, an area that should be obvious support anyway, so I like the fact that this candle sits here, and I believe that we are going to go higher. If we can break above the top of the candle for the week, we should continue to reach towards the 26,000 level, and then ultimately higher than that. I have no interest in shorting this market, least not anytime soon.

NASDAQ 100

The NASDAQ 100 initially pulled back during the week, testing the 6700 level for support. We have found enough support at that area to turn around and rally significantly though, as we are testing the 6900 level. I believe that we are going to revisit the $7000 level, and then break above there to continue going much higher. At this point, I have no interest in shorting the NASDAQ 100, I believe that there is more than enough reason to think that we will find buyers underneath, as the markets will continue to be a “buy on the dips” attitude. I think that the algorithmic traders are looking at the NASDAQ 100 as a market that should remain bullish, and therefore I believe that there is a hard floor at the 6500 level. If we break down below there, the changes everything, but until then you can’t sell this type of set up.

Dow Jones 30 and NASDAQ Index Video 26.02.18

This article was originally posted on FX Empire

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