NASDAQ How to Trade
NASDAQ 100 index of US listed shares
The price bounced from SMA50 but it could not develop further upward movement. If we get a new bearish candle today, probably it will be a signal for the falling to the support zone formed by 7200.00 level and SMA100. Buying from this zone will be more logical based on a confirmed reversal signal. Stop orders for long trades should be placed below the local swing low with profit targets at the resistance level . Also there is another variant for trading in this zone. If the price breaks the support zone , we’ll be able to open short trades with profit targets at lower support levels and stop above the local swing high.
Signals from indicators:
– RSI confirmed the price reversal
– MACD confirms the downward movement
– DMI tells us about range market conditions.
Based on the signals from indicators it’s more likely that the price will reach the support zone .
Source: TW DLavrov