The Nasdaq has demonstrated notable resilience in its recent upward movement, retracing approximately 50% of the decline experienced during the first quarter. Importantly, price action has reclaimed the anchored Volume Weighted Average Price (VWAP) from the all-time high (ATH)—a technical milestone often interpreted as a bullish signal. This is particularly significant considering that the last time this level was tested, the index subsequently declined by nearly 15%.
Currently, price is consolidating within what appears to be a bearish wedge formation. Should this pattern resolve to the upside, it could signal a broader market reversal. In such a scenario, key levels to monitor include the golden fib 618 and the anchored VWAP from the recent low—both potential zones of support. A decisive breakdown below these levels, however, would carry bearish implications, likely opening the door to new lows.
At the moment, I have plotted a potential 1-1 extension of what can be an ABC pattern within the wedge, in confluence with a daily level of liquidity. This is the major level I will be paying attention to.
For now, a prudent approach is to assess the market on a level-by-level basis and remain agile in identifying the next viable trading opportunity.
Currently, price is consolidating within what appears to be a bearish wedge formation. Should this pattern resolve to the upside, it could signal a broader market reversal. In such a scenario, key levels to monitor include the golden fib 618 and the anchored VWAP from the recent low—both potential zones of support. A decisive breakdown below these levels, however, would carry bearish implications, likely opening the door to new lows.
At the moment, I have plotted a potential 1-1 extension of what can be an ABC pattern within the wedge, in confluence with a daily level of liquidity. This is the major level I will be paying attention to.
For now, a prudent approach is to assess the market on a level-by-level basis and remain agile in identifying the next viable trading opportunity.
Note
NO trade zone as we are blasting through resistance!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.