NASDAQ COMPOSITE, Bounce on BULLISH MARKET, TARGETS ACTIVATED!

Hello There!

Welcome to my new Analysis about the NASDAQ COMPOSITE INDEX. The index recently showed up with an important bullish inclination and bouncing in the range. Now, a big question is if the index has potential to continue with this rally. Mainly, the index bounced because of eased inflation data with the CPI decreased for the period. An ordinary driver of the initial bullish boost is also the increased Personal Consumption Expenditures of over 4% adding up to the overall consumption and therefore also the money flows into the index price-action. The FED could turn their policies into a more dovish condition which could ease further money flows into the capital market. Furthermore, I have detected important technicals in the data dashboard to consider in the current and upcoming market.

As when looking at my chart now the index completed a massive descending triangle formation with an exceptional bounce and confirmation above the upper boundary setting up the rally with which the index now emerged. The index is still trading above several support-zones namely the broader ascending trend-line, the local ascending trend-line, the 65-EMA in green, and the local support zones. What is also so important here, and what is adding up to this overall bullish structure is the fact that the NASDAQ completed this major RSI Inverse Head-And-Shoulders Pattern with an appropriate breakout and is now aiming higher as this is what the RSI is doing after completing such a pattern. Always when the RSI has completed such an strong pattern this means that there is a lot of room for both the RSI and the price-action to continue into the bullish spheres.

With completion of the bullish RSI pattern and the descending-triangle-formation the index is on the right track for the continuations and has now activated the upper target-zones as they are marked in my chart. When considering this dynamic is has to be mentioned that once the final target-zones have been reached and the index continues with the right bullish momentum and has the potential to stabilize within this upper level there is a high possibility likelihood given that a bullish continuation is going to setup once the index has formed the breakout into the bullish continuation-zone as the zone is marked in my chart. Especially with a further positive development within the inflation data outlooks this is likely to boost a bullish perspective here. This in combination with the technical approach can lead to major developments into this direction and therefore we are putting the symbol on our watchlist and re-evaluate the situation once further information comes in.

In this manner, thank you everybody for watching, support is greatly appreciated, all the best!

VP