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Nasdaq – buy limit on corrective reverse.

/ Not a trade recommendation. /

Motives:

Fundamental analysis

  1. Possible lower and earlier interest rate peak.
  2. Reduction of inflation
  3. Companies in the sector have already made strong cost cuts.
  4. The forecasts of most companies in the index are for growth in revenue and profit
  5. Major investment banks are positive (67% buy) with a 12-month price target at the level of 14336.

Technical analysis

  1. Strong bounce from the horizontal support zone (11700 – 12000) and 200MA
  2. Strong increase in volumes during the ascent.
  3. Sequential prints up and DeMarker is headed for overbought.
  4. Double bottom formation.
  5. Strongly increased volumes in the support zone.

Conclusion:

Placed buy limit – 12400, stop loss 11700. Target 13800.


 Dealer Radoslav Valov

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