Trend Lines, Support, Resistance for 10/2
Trend lines drawn from 9/3 (21d), 9/24 bottom (7d), 9/28 (5d) and today 10/2 (1 day).
Nasdaq reversed down on 10/2 on uncertainty around the positive COVID result for the US President. September support became resistance again. However, the virus wasn't strong enough to break the 50d MA support. Volume was much higher than the previous day, and early morning positive gains were sold off thru the day.
Without further news to worsen the situation the likely outcomes on Monday are relatively modest. If the 5d trend continues, then it would be a 1.72% increase, taking the Nasdaq back to the September resistance. The trend from the 9/24 bottom would mean a 3.70% gain.
Continuing the trend after the negative news would mean another -1.12% drop and would return to the longer trend from the 9/2 top. Both the 1d and the longer trend (21d) point to the same spot.
I'm keeping the June Support line and the possibility of a future decline to that point on the map. There are only two days (July 1 and 2) filling the gap between June support and July support. A fall below July support would be significant.
Nasdaq reversed down on 10/2 on uncertainty around the positive COVID result for the US President. September support became resistance again. However, the virus wasn't strong enough to break the 50d MA support. Volume was much higher than the previous day, and early morning positive gains were sold off thru the day.
Without further news to worsen the situation the likely outcomes on Monday are relatively modest. If the 5d trend continues, then it would be a 1.72% increase, taking the Nasdaq back to the September resistance. The trend from the 9/24 bottom would mean a 3.70% gain.
Continuing the trend after the negative news would mean another -1.12% drop and would return to the longer trend from the 9/2 top. Both the 1d and the longer trend (21d) point to the same spot.
I'm keeping the June Support line and the possibility of a future decline to that point on the map. There are only two days (July 1 and 2) filling the gap between June support and July support. A fall below July support would be significant.
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