When looking at the daily time frame, the Nasdaq is trading at the top of a large resistance channel which has the potential to mark the end of wave 5.
It is possible to see wave 5 continue higher and this would be confirmed if the resistance at point (B) on the chart is broken.
I am expecting to see a larger corrective ABC pattern which has a target at the previous daily high around 15700. Should the resistance at point (B) not hold, this would mean that the larger ABC correction is not on the cards and that wave 5 on the daily time frame will continue to form.
Should the ADB pattern play out as I expect it to, I will be looking to build a long position from there.
Happy trading!
Linton
This information is not intended as advice.
It is possible to see wave 5 continue higher and this would be confirmed if the resistance at point (B) on the chart is broken.
I am expecting to see a larger corrective ABC pattern which has a target at the previous daily high around 15700. Should the resistance at point (B) not hold, this would mean that the larger ABC correction is not on the cards and that wave 5 on the daily time frame will continue to form.
Should the ADB pattern play out as I expect it to, I will be looking to build a long position from there.
Happy trading!
Linton
This information is not intended as advice.