Nasdaq Index Technical Analysis for mid to end of June, 2022

Technical Analysis

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Nasdaq Index Technical Analysis for mid to end of June, 2022

The Nasdaq Composite Index includes more than 3,700 Nasdaq equities. The Nasdaq Composite Index is a wide index significantly weighted toward the technology sector.

For the Nasdaq Index ending on 17 June 2, 2022, ForexLive.com presents the following technical analysis chart images and videos, showing NDX’s past move and behavior. In certain cases, we further attempt to predict the upcoming post earnings stock move and trading opportunities by analyzing Nasdaq Index’s price trend on the monthly chart, daily chart pattern, momentum indicators, oscillators, moving averages and support & resistance levels.

Nasdaq Index Technical Analysis on the Monthly Chart

NDX is close to a strong potential reverse zone at roughly 10775 to 11000, as the below technical analysis video of the Nasdaq Index shows:

Nasdaq Index Daily Chart Patterns

NDX is presenting a bullish ‘Falling Wedge’, whereby two descending trend lines denoting highs and lows make a falling wedge chart pattern. This is Bullish reversal chart pattern on the daily timeframe of the Nasdaq Index.

Falling wedge on Nasdaq daily

Falling wedge, Nasdaq daily chart, 17 June 2022

Nasdaq Index Technical Analysis Momentum Indicators

The Momentum Indicator (MOM) is a leading indicator that measures the pace of change of a security. On the hourly time frame, so far on 17 June 2022, as the below chart image shows, the momentum of Nasdaq Index stock is rising in a “V” bullish reversal.

Nasdaq Index Technical Chart with Momentum on the Hourly Timeframe, 17 June 2022

Nasdaq Index Momentum on the Hourly Timeframe, 17 June 2022

Nasdaq Index Technical Analysis by Oscillators

The most popular oscillator indicator is the RSI (Relative Strength Index), and in technical analysis, this indicator examines the size of recent price fluctuations to determine if a stock or other asset is overbought or oversold.

The RSI is analyzed within the below technical chart image, for the popular 4 hour timeframe. It shows that NDX is at an oversold area. While overbought or oversold states can last for a longer period of time than some technical analysts or traders might expect, this perspective does support the chances of a bullish reversal, starting Friday, 17 June 2022. This may become a pivot low point for the next coming weeks.

Nasdaq Index Technical Analysis with RSI, 4hr timeframe, 17 June 2022

Nasdaq Index with RSI, 4hr timeframe, 17 June 2022

Nasdaq Index Technical Analysis by Moving averages

Moving averages are used to assess the trend direction of stocks. It’s determined by summing all the data points for a period and dividing by the number of periods.

Currently, Nasdaq Futures (NQ) at 11272 at the time of writing, is attempting to close an hourly bar above the popular 20 EMA (20 bar exponential moving average) at 11265. Should that candle close above the 20 EMA, it is a continued bullish sign and supports a start of a relief rally. Still, it is best that traders confirm that hypothesis with today’s future daily candle close, which will also be a weekly candle close. Both need to be above 11272 for the bulls to have a strong case for a bullish reversal, otherwise, the bears would regain control.

NQ technical analysis with moving average 17 June 2022

NQ technical analysis with 20EMA on the hourly, 17 June 2022

Nasdaq Index Technical Analysis by Support and Resistance Levels

Support is a low stock price level, whereas resistance is a high level. When a stock’s price lowers, traders buy. Reactionary purchasing stops a stock’s decline and starts its rise.

As the below technical analysis video of Nasdaq Index shows, we are at the area of strong potential for a bullish reversal, close to 11000. If we close a daily candle below 10500, that hypothesis is broken and the bears regain control. For now, the bullish reversal seems to be imminent and profitable bulls taking the Long trade now, should later have their eye on partial profit taking at apx 11800.

Trade Nasdaq Index at Your OWN RISK

Technical analysis is no magic and it has no guarantees. Many analysts who manage their trade well, can be fruitful with even a 55% win rate. The above demonstrates that we are now on the look out for a bullish reversal, starting today. We hope for our technical analysis and opinion to assist you as long as you understand that you are always trading at your own risk only.

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