NASDAQ Composite (.IXIC) on a Roll

NASDAQ Composite (.IXIC) on a Roll

NASDAQ Composite (.IXIC) on a Roll

The tech-heavy Nasdaq Composite index is on the rise again after closing in positive territory for five successive trading days. The tech rally can be attributed to strong showing by several tech behemoths. This also highlights the fading of investors’ apprehensions regarding a full-fledged global trade war at least for the time being, and their confidence on strong U.S. economy.

Moreover, U.S. corporates have so far reported robust results for second-quarter 2018, maintaining the terrific earnings momentum which has commenced since the first-quarter 2018. Consequently, it will be a prudent move to invest in tech stocks which carry a favorable Zacks Rank and are part of the Nasdaq Composite.

Shayne Heffernan of HEFFX said “Tech to a large degree can sidestep the trade wars, still plenty of upside for many companies”

Overall, the bias in prices is: Upwards.

The projected upper bound is: 8,075.06.

The projected lower bound is: 7,710.26.

The projected closing price is: 7,892.66.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 96.2200. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.96. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 32 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 90. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.

Rex Takasugi – TD Profile

NASDAQ COMPOSITE closed up 23.986 at 7,883.664. Volume was 2% above average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
7,878.6207,898.2037,868.6487,883.664 514,389,312

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,788.90 7,696.17 7,243.99
Volatility: 18 15 19
Volume: 508,522,240 529,303,328 515,739,712

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

NASDAQ COMPOSITE gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 8.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 2 periods.

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