Nasdaq Closes Above Triangle, Targets Sub-23K<\/h2>\n\n\n\n![\"\"](\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/09\/COTD-24.09.30-TA-1024x597.jpg\")
<\/figure>\n\n\n\nThe Nasdaq has closed above its EMA-20 once again, the second time in the last three months. This move aligns with the formation of a multimonth triangle pattern<\/a> starting in July.<\/p>\n\n\n\nThe breakout target for this triangle sits at approximately $22,900, which would represent a 14.60% increase from the current price.<\/p>\n\n\n\n
However, traders must be mindful of the resistances overhead, which is a mix of the All-Time High, and round numbers that could act as psychological resistance:<\/p>\n\n\n\n
\n- All Time-High <\/strong>at $20,762.70<\/li>\n\n\n\n
- $21,000<\/strong><\/li>\n\n\n\n
- $21,500<\/strong><\/li>\n\n\n\n
- $22,000<\/strong><\/li>\n\n\n\n
- $22,500<\/strong><\/li>\n\n\n\n
- Breakout Target <\/strong>at approx. $22,900<\/li>\n<\/ul>\n\n\n\n
Nasdaq has Short-Term Signals for a Retracement to EMA-20<\/h2>\n\n\n\n
The Nasdaq’s daily timeframe is showing a double top on its Stochastic RSI. Historically, this signal has typically led to a minor retracement, with the price often dipping back to the Daily EMA-20 before resuming its bullish momentum.<\/p>\n\n\n\n
Here are the instances where the Stochastic RSI was overbought or formed a double top, resulting in a brief retrace to the EMA-20 before continuing upward:<\/p>\n\n\n\n![\"\"](\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/09\/COTD-24.09.30-TA-2-1024x597.jpg\")
<\/figure>\n\n\n\nAs you can see, when the Daily EMA-20 curves upwards, the Stochastic RSI\u2019s overbought or double top signals tend not to result in significant price declines.<\/p>\n\n\n\n
More times than not, the Daily EMA-20 acts as a magnetic support line<\/strong>, giving Nasdaq\u2019s strength to grind further up, towards new highs.<\/p>\n\n\n\n![\"\"](\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/09\/COTD-24.09.30-TA-3-1024x597.jpg\")
<\/figure>\n\n\n\nZooming in on the chart, we can see the Daily EMA-20, Point of Control, and Fair Value Gap aligning to form a potential support zone<\/strong> between $19,568 and $19,740.<\/strong><\/p>\n\n\n\nHere\u2019s a breakdown of each support level:<\/p>\n\n\n\n
\n- EMA-20<\/strong>\n
\n- Dynamic and subject to change, requiring monitoring<\/li>\n\n\n\n
- Approx. $19,627.69<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Weekly FVG<\/strong>\n
\n- A price gap that typically acts as a magnetic support or resistance zone<\/li>\n\n\n\n
- From $19,568 to $19,740<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Point of Control<\/strong>\n
\n- Price level with the highest trading volume, measured from the All-Time High on 11 July 2024<\/li>\n\n\n\n
- Currently at $19,521.18<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n
Given the presence of an overbought and Double Top signal on the Stochastic RSI indicator, the price of Nasdaq could see a retracement to this zone in the upcoming days.<\/p>\n\n\n\n
Weak DXY Could Give Nasdaq Opportunity to Rise<\/h2>\n\n\n\n
The DXY has closed a bearish weekly candle under the December \u201823 Pivot Lows at 100.641, which means the US Dollar could weaken even further.<\/p>\n\n\n\n![\"\"](\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2024\/09\/COTD-24.09.30-TA-DXY-1024x597.jpg\")
<\/figure>\n\n\n\nThe next major support level for the DXY would be the 2023 Lows at 99.477, but a break of that would spell even more danger for the dollar \u2013 potentially going towards its 2022 Lows at 94.677.<\/p>\n\n\n\n
This is all good news for the Nasdaq. However, one should keep in mind that the US Fed Pivot<\/strong> and US elections<\/strong> could throw a wrench in the Technical Analysis of the DXY and Nasdaq.<\/p>\n\n\n\nYou may also be interested in:<\/em><\/strong><\/p>\n\n\n\nNetflix Stock Forms All-Time Highs, Eyes $800.00<\/a><\/p>\n\n\n\n
<\/figure>\n\n\n\nThe Nasdaq has closed above its EMA-20 once again, the second time in the last three months. This move aligns with the formation of a multimonth triangle pattern<\/a> starting in July.<\/p>\n\n\n\n The breakout target for this triangle sits at approximately $22,900, which would represent a 14.60% increase from the current price.<\/p>\n\n\n\n However, traders must be mindful of the resistances overhead, which is a mix of the All-Time High, and round numbers that could act as psychological resistance:<\/p>\n\n\n\n The Nasdaq’s daily timeframe is showing a double top on its Stochastic RSI. Historically, this signal has typically led to a minor retracement, with the price often dipping back to the Daily EMA-20 before resuming its bullish momentum.<\/p>\n\n\n\n Here are the instances where the Stochastic RSI was overbought or formed a double top, resulting in a brief retrace to the EMA-20 before continuing upward:<\/p>\n\n\n\n As you can see, when the Daily EMA-20 curves upwards, the Stochastic RSI\u2019s overbought or double top signals tend not to result in significant price declines.<\/p>\n\n\n\n More times than not, the Daily EMA-20 acts as a magnetic support line<\/strong>, giving Nasdaq\u2019s strength to grind further up, towards new highs.<\/p>\n\n\n\n Zooming in on the chart, we can see the Daily EMA-20, Point of Control, and Fair Value Gap aligning to form a potential support zone<\/strong> between $19,568 and $19,740.<\/strong><\/p>\n\n\n\n Here\u2019s a breakdown of each support level:<\/p>\n\n\n\n Given the presence of an overbought and Double Top signal on the Stochastic RSI indicator, the price of Nasdaq could see a retracement to this zone in the upcoming days.<\/p>\n\n\n\n The DXY has closed a bearish weekly candle under the December \u201823 Pivot Lows at 100.641, which means the US Dollar could weaken even further.<\/p>\n\n\n\n The next major support level for the DXY would be the 2023 Lows at 99.477, but a break of that would spell even more danger for the dollar \u2013 potentially going towards its 2022 Lows at 94.677.<\/p>\n\n\n\n This is all good news for the Nasdaq. However, one should keep in mind that the US Fed Pivot<\/strong> and US elections<\/strong> could throw a wrench in the Technical Analysis of the DXY and Nasdaq.<\/p>\n\n\n\n You may also be interested in:<\/em><\/strong><\/p>\n\n\n\n Netflix Stock Forms All-Time Highs, Eyes $800.00<\/a><\/p>\n\n\n\n\n
Nasdaq has Short-Term Signals for a Retracement to EMA-20<\/h2>\n\n\n\n
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Weak DXY Could Give Nasdaq Opportunity to Rise<\/h2>\n\n\n\n
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