COMPQ Nasdaq Composite Daily Chart Testing 50 MA

COMPQ daily chart of the Nasdaq Composite shows a big fight with the 50 MA the last 10 days. As shown by the red circles, first test of the 50 held, second test held, third test is now in progress with the 50 MA trying to hold the line at 2742. This outcome is important since it can put in play an H&S pattern that would target 2530-ish.

The indicators are sloping up over the last three weeks so they want to give price positive divergence but this cannot happen until price moves to 2700, which represents a failure of the 50 MA. The negative divergence, overbot conditions and rising wedge, along with the doji candle, marked the top in late February. Some big gaps to fill on the downside and in fact a break of the 50 MA would serve to fill that gap at 2710. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.