Nasdaq oversold?

By Julian Yosovitch

July 23, 2014 • Reprints

The Nasdaq continues its bullish rally inside the short term bullish channel that began at the 3437 level. It's interesting that although the market is at historical highs, the bullish consensus index is showing oversold levels. As long as the market stays within the bullish technical figure and if we dont see signs o af short-term reversal, we will continue to expect more rallies. Those rallies may take the market towards higher levels within an upward zone of a bullish channel located at 4,000 points, which is also an important technical psychological resistance.

The break above 4,000 will enable further bullish movements towards 4050-4100 points for the next few weeks.

If the market turns, we will find support at 3915 or potentially at 3865, while 3810 is the short- and medium-term key support for the Nasdaq, as well as where the increases should resume as projected.

If the market breaks out below the bullish channel, it would signal further declines.

Let's take a look.

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About the Author

Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).

He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.