NASDAQ Thinly supported. Needs a 1D MA50 break to avoid sell-off

The Nasdaq (NDX) index had a strong rejection these past 4 weeks exactly on the level we projected on our idea on August 04:


Right now it is trading below both the 1D MA50 (blue trend-line) and the 1D MA100 (green trend-line), which were its short-term Support levels and have now turned into Resistances as each have rejected upwards break-out attempts at least once.

Being on the 0.236 Fibonacci retracement level and based on the RSI (1W time-frame), which just hit its MA line (yellow), NDX appears to be in a similar level its was during April 11 - 20. This consolidation led lower when its Support broke and dropped first to the previous Low (0.0 Fib) and then to Lower Lows on the -0.382 and -0.5 Fibs respectively. As a result, if the current Support breaks, we expect the 1W MA200 (red trend-line) to be tested, which is slightly above the 11040 Lot of June 16 and depending on the market conditions at the time (which we will surely update on), the 1W MA300 (yellow trend-line), which is slightly above the -0.382 Fib.

On the bullish case, if the price breaks above the 1D MA50, consider it a buy break-out signal and target the 1W MA200 (orange trend-line).


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