NASDAQ - Market Is Going to Fall

The daily chart clearly shows that the market is going to correct the previous strong upward movement. RSI and MACD support a possible downtrend movement.

If we look at the 4H chart, we can see the price attempts to break below SMA100. It's a signal that the uptrend can be reversed. MACD supports the further downward movement. DMI is bearish, and ADX line confirms the strength of the bears.

If the price can drop below SMA100, it can give a sell signal. But the price is not far from 7000.00 support level. This level is rather strong and the price can bounce from it. For opening short trades it will be better to wait for a breakout below 7000.00 level too. Stop orders must be placed above the local high at 7200.00 resistance. Profit targets will be at the support levels.

For the confirmation the upward movement to 7200.00 level at least, the price will have to break the downtrend line. But it looks like the better zones for buying will be lower at 6800.00, 6600.00 and 6500.00 support levels.

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