NASDAQ Hovers Near A Critical Resistance
2022.05.31 17:46
The end of May was excellent for indices across the globe. I don’t think anything negative can happen on the last trading day of the month, although the European session is a bearish one. That’s understandable, as the last four trading days were very bullish.
Will The Fed Ease?
Experts point at the Fed, where we’re expecting a more dovish approach to increasing rates, in which case the second half of the year may not be so aggressive. Moreover, many experts point to China, where Covid restrictions are easing, which can generally be considered good news.
Respecting The Fibonacci Levels
Technically, the situation favors buyers. The price created a double bottom formation (yellow) on the 50% Fibonacci. What’s more, we broke the down trendline (red), which in theory cancels the negative sentiment.
What’s worth mentioning is how the price respects the Fibonacci levels. First, we had this 50%, and now, the price is stopping at 38.2%. When the 38.2% is broken, we may say that a proper, strong buy signal will be triggered.
On the flip side, positive sentiment will be canceled when the price breaks the 50% Fibonacci, which for now, is less likely to happen.
NASDAQ daily chart.
