Synopsis: In this article, we delve into the analysis of the NASDAQ Futures and Dow Jones daily chart data for August 21, 2023. By examining pivot points, technical indicators, and moving averages, we provide detailed observations on potential trading opportunities. We highlight key resistance and support levels, along with suggested entry and exit points for both indices.
Introduction: On August 21, 2023, the U.S. session witnessed notable activity in the Dow Jones Industrial Average and NASDAQ Futures. This article dissects the daily chart data for these indices, focusing on pivotal points, technical indicators, and moving averages to offer valuable insights for potential trades.
NASDAQ Futures Analysis:
Early Charts: The NASDAQ 100 index displayed a promising trend on the early charts. Notably, higher highs and higher lows indicated an upward trajectory. An interesting development was the shift in slope, suggesting a potential reversal. The key resistance to break was 14840, with potential targets at 14800 and 14889-14920. Traders were advised to exercise caution around the 14700-14800 zone, as a v-shaped recovery was plausible. Technical indicators like stochastic and MACD supported a bullish outlook.
3-Hour Charts: Analyzing the 3-hour charts, the support from the 20-period moving average around 14760 was evident. The entry was suggested above 14800, targeting 14840 and possibly even 14920. Stochastic and MACD indicators remained positive, supporting potential gains.
Daily Charts: The daily charts reinforced the key resistance at 14,840, followed by a critical zone at 14889-14920. Conversely, support was strong at 14700 and 14670. A V-shaped recovery was projected, and traders were urged to be watchful of a potential reversal.
Dow Jones Analysis:
Early Charts: The Dow Jones index exhibited a double bottom pattern on the early charts, indicating a bullish sentiment. Higher highs and consolidation further supported an upward move. It was crucial for the index to maintain levels above 34,600, as this could lead to gains towards 34,700-34,720. The bears might gain momentum below 34,500. A significant support zone was identified at 34,400.
4-Hour Charts: The 4-hour charts highlighted a touch of the 20-period moving average, suggesting an entry point around 34,650. Potential targets included 34,700-34,720 and 34,800-34,840. Technical indicators like stochastic and MACD indicated favorable conditions for bullish moves.
Daily Charts: On the daily charts, Dow Jones demonstrated higher lows and higher highs, with a potential target at 34,700-34,720. The oversold stochastic, converging MACD, and recovering RSI pointed towards possible recovery.
Conclusion: August 21, 2023, witnessed dynamic movements in both NASDAQ Futures and Dow Jones. Analyzing the charts, we identified crucial resistance and support levels, providing valuable insights for traders. While the NASDAQ 100 was anticipated to experience a potential V-shaped recovery, Dow Jones displayed bullish sentiments across different time frames. Traders were encouraged to approach their positions cautiously, considering the observed technical indicators and key price levels.
Disclaimer: The analysis provided in this article is based on historical data and technical indicators. Trading involves risks, and the information provided should not be considered as financial advice. It is recommended to consult with a qualified financial professional before making any trading decisions.
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