Synopsis: In this article, we will analyze the daily charts of NASDAQ and Dow Jones to identify potential trading opportunities. We'll explore pivot points, technical indicators, and moving averages to make informed observations about the market trends. Entry and exit points for potential trades will be discussed, focusing on key resistance and support levels. By examining these factors, traders can gain insights into the possible price movements and make informed decisions.
As the U.S. session begins on August 17, 2023, let's delve into the analysis of NASDAQ and Dow Jones daily charts. The previous Asia session indicated the possibility of a recovery as both indices were trading outside their respective Bollinger Bands. A potential upward push was anticipated. A buy recommendation for Tech Hundred at around 14,860 to 14,860 levels was suggested with caution up to 14,960. Notably, both NASDAQ and Dow Jones had achieved their first milestones at 14,850 and 14,850 levels respectively.
NASDAQ Analysis: Examining the daily chart of NASDAQ, we observe it still trading within a bearish channel. The upper boundary of this channel is approximately at 14,960 levels. A crucial resistance-turned-support level, 14,960 is where bulls might attempt to take control. Above this, levels such as 15,050 and 15,100 are crucial. However, it's essential to remember that this currently signifies a retracement, not a reversal. The previous resistance at 14,960 may now act as a resistance level. Stochastic is nearing its peak, while MACD has crossed over with divergence, indicating bullish momentum. RSI is rising, supporting a bullish outlook.
On the four-hour chart, we notice that NASDAQ tends to converge whenever there's divergence from moving averages. This pattern suggests a possible rise towards 15,050-15,060 levels. However, resistance persists at 15,020 and 15,100. A retracement zone is forming with higher lows above 14,930. Buyers can consider entries above 14,930, but caution is advised at 14,960 and beyond, where strong resistance lies. MACD's convergence might lead to a crossover, indicating an upside retracement.
Dow Jones Analysis: Moving to Dow Jones, lower highs and lower lows are evident on the hourly chart. The highs around 34,950-35,000 levels signal potential resistance. A rise towards these levels is possible, but a break below 34,750 could indicate a selling opportunity towards 34,700 and subsequently 34,600. Stochastic is dropping, and MACD is bullish with potential convergence.
The two-hour chart shows a similar pattern of higher highs and higher lows. A buying entry above 34,850 could lead to gains towards 34,900-34,950 levels. Resistance at 35,000 might be challenged after crossing 34,960. On the four-hour chart, Dow Jones exhibits a reversal sign with higher highs and higher lows. A breakout beyond 34,850 or 34,750 will determine the direction. Stochastic's rise and MACD's convergence suggest possible bullish momentum.
Daily charts reveal that Dow Jones is trading within diminishing candle sizes. The index opened outside Bollinger Bands, potentially indicating an upward push. The resistance lies around 34,960-35,050 levels. Stochastic, MACD, and RSI trends should be considered while making trading decisions.
Entry and Exit Points (Summary):
NASDAQ: Buy around 14,930 with caution near 14,960 and strong resistance at 15,020-15,100 levels. Sell below 14,870 for potential declines towards 14,840 and 14,800 levels.
Dow Jones: Buy above 34,850, targeting 34,900-34,950 levels. Resistance at 35,000 should be closely monitored. Consider selling below 34,750 for a potential drop to 34,700 and 34,600 levels.
Conclusion: The analysis of NASDAQ and Dow Jones daily charts reveals potential trading opportunities based on pivot points, technical indicators, and moving averages. Traders should be cautious of key resistance and support levels. The provided entry and exit points offer a guideline to navigate these markets.
Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, and readers should conduct their own research before making any trading decisions.
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