Technical explosive model in the stock market
2023.01.28 03:52
Technical explosive model in the stock market
Budrigannews.com – Stock prices are expected to rebound strongly following a strong January, according to investors. Particularly, the prices of tech stock.
The sector was particularly hard hit by the selloff in the previous year due to a slowing economy and strong headwinds for growth stocks. In 2023, investors hope that these obstacles will lessen or vanish.
Today, we examine the chart of a significant stock market index to determine what might be coming in the months to come.
The First Trust NASDAQ-100 Equal Weighted Index Fund’s monthly long-term line chart can be found below (NASDAQ:). We can see that QQEW maintained its rising 13-year price channel support despite the violent selloff.
The subsequent stair-step bounce contributed to the formation of a very bullish pattern for the stock market: a head-and-shoulders inverse. Price is currently testing the pattern’s neckline, which serves as resistance.
If there is a breakout here, this will turn bearish.
Additionally, a tech breakout would convey a bullish message to the economy and market as a whole. Keep watching.
