Saturday, April 23, 2016

COMPQ Nasdaq Composite Daily Chart Overbot Rising Wedge Negative Divergence

The Nazzy is displaying negative divergence which creates the initial spankdown off the top. The overbot stochatics and the rising wedge are bearish indications. The ADX shows that the downtrend in price to begin the year was very strong but the two-month uptrend is not (ADX remains 22 or lower).

Price started to fill that huge gap at 4900-5000. The gap above is 5060-ish. The upper resistance is 5153. The chart is set up negatively and the collapses from rising wedges can be quite dramatic. The weekly chart indicates a preference to see higher highs say in May after any pull back occurs in the daily time frame. The 200-day MA at 4850 serves as a near-term target for a pull back where a bounce or die decision would occur. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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