Tuesday, December 6, 2022

Is Nasdaq About To Fall 25%?

-


Nasdaq Composite 25-Year Chart.

Nasdaq Composite 25-Year Chart.

Technology is the lifeblood of our current economy and dictates future innovation. The sector has also taken a primary leadership role in the 11-year bull market.

But, as most of you are aware, that doesn’t mean that tech stocks are always smooth sailing. In fact, the Nasdaq and tech stocks can be a bumpy ride. Just check out today’s chart!

Displayed here is a “monthly” chart of the , which highlights some a handful of large bearish reversal patterns.

The month of October is not over yet, however, it appears that the Nasdaq Composite Index is creating a rather sizeable bearish reversal pattern. As well, this move to the downside is occurring just after the index kissed the underside of the 261% Fibonacci extension level at (1).

Glancing back at recent history, you can see that a handful of large monthly reversal patterns have lead to significant declines of 25% or more.

Should October close out at current levels and confirm this bearish reversal pattern, it would send a message of caution to investors.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,599FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories