The NASDAQ index is currently hovering near its session highs as traders aim to retest its 50-hour moving average, which is at 18418.93. The price has already hit 18413.38. This represents a possible increase of 125 points or 0.68%.
In the previous trading session, the price dropped below both the 50-hour moving average (orange line) and the 100-hour moving average (blue line). However, it did not manage to reach the upward trending 200-hour moving average, which is currently at 18139.00 (green line on the chart).
The gap higher in today’s trading session pushed the price above the 100-hour moving average at the opening. Apart from a brief dip below that moving average in the middle of the day, the price has largely stayed between the 50 and 100-hour moving average levels.
Traders are now closely monitoring the market for the next significant move that will define the direction or bias. If the price extends above the 50-hour moving average, it could disappoint the sellers and potentially trigger more upward movement as short positions are covered. On the other hand, if the price drops back below the 100-hour moving average and maintains that position, sellers may gain more confidence, leading to a potential decline towards the rising 200-hour moving average at 18138.94. It’s worth noting that the price has not dipped below the 200-hour moving average since September 11.
As traders continue to analyze and interpret the market movements, they will be looking for key indicators to guide their trading decisions. The interactions between the various moving averages provide valuable insights into potential price movements and market sentiment. It is essential to stay informed and adaptable in response to changing market conditions to navigate effectively through the fluctuations in the NASDAQ index.
