Stocks drifted sideways on Wednesday, with investors digesting a slew of earnings results and looking ahead to another set of reports. A monetary policy statement from the Federal Reserve is also slated for release. Nasdaq struggled for direction, fluctuating between small gains and losses.
Technical overview:
As you can see, we find ourselves in the middle of an ascending channel. In the past 2 months, Nasdaq had a strong bullish trend that pushed the price to new record highs. The next move that we expect is a bearish one, as the trend needs to correct in order to gain more bullish momentum. We will wait for the price to reach the upper channel line and from there we expect a depreciation that will push the price towards the support area marked on the chart. We advise caution, as the market will most probably be unstable due to the FOMC meeting. Trade with care.
Best regards, Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.