On 27th July we published our analysis on NASDAQ with our entry point at 15120, stop loss 15150 and targeted profit destination at 14973. Fortunately the fish was caught with a hook right up its throat with minimum possibilities of a bullish continuation and moved beyond our level towards 14800. It was because of the impulsive 5 wave bullish structure which was awaited for a correction and the relative strength index on daily was facing overbought conditions along with MACD being drained off its hawkish energy. NAS100 fell 0.75% towards 14790-14667 in certain market. According to fundamental this dovish move was also instignated by the highest numbers of covid-19 recorded cases throughout the America with a total of 34,751,040 reported infectants and 612,120 deaths. Google, Tesla, Microsoft and many big techs performed really well this week but Amazons weak performance pulled NASDAQ for dovish drive. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From current market perspective NAS100 broke an important price action i.e 15000 forming wave 'a' of bearish corrective structure and landed near our two hourly exponential moving average 200. That zone became a point of retracement for NASDAQ and now possibilities are that its within wave 'b' now. The index in four hourly chart managed to get itself above our intraday exponential moving averages i.e 8,13,21 and 50 which might provide some short term strength to sustain in the current zone i.e below 15000-15009. Our previous stop loss of 15150 is still intact, as long as the previous highest high isnt broken  - we will be expecting the index to fall towards daily exponential moving average 50 to complete its final corrective wave c. The aforementioned level has our 61.8% fibb level as well with a strong weekly support at 14293 which might became a strong indication/ area for NASDAQ to continue its major bullish move of higher degree. 

NASDAQ HAS MORE ROOM FOR BEARISH CORRECTION YET

Jul 31 2021