NASDAQ The level that has to hold

23 Nov 2021

Nasdaq is ahead of critical crossroads as the Lower Highs on the RSI on the 1D time-frames show a bearish divergence against the Higher Highs of the actual price.

When the 1D RSI formed this sequence in the past, the index dropped at least -8% but only if the previous Low broke (black support). In mid July the Low held and Nasdaq continued on a small Channel Up towards one last Higher High before eventually correcting -8%.

As a result, I expect a Higher High as long as the previous low holds. If broken then a bottom on the Diverging Higher Lows trend-line is possible. In either case the next bullish target is 17000.



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