Nasdaq technical analysis: Recent bull rally is real. Watching for 13000 next.

The following Nasdaq technical analysis breaks down price action and charting techniques into:

1. The levels of resistance and support, focusing on the weekly price chart in this case
2. Moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term indicator to obtain another view for the market trend
3. Trendlines
4. Candlestick Candlestick Candlestick charts are used by traders to describe price movements of any asset or security, including stocks, currencies, etc.Candlesticks can be broken down into any interval, including minute-long periods, or most commonly one day.This form of analysis is similar to a bar chart in that each candlestick represents all four important pieces of information for that day. This includes open and close in the thick body, as well as a high and low in the candle wick. These visualized tools are instru Candlestick charts are used by traders to describe price movements of any asset or security, including stocks, currencies, etc.Candlesticks can be broken down into any interval, including minute-long periods, or most commonly one day.This form of analysis is similar to a bar chart in that each candlestick represents all four important pieces of information for that day. This includes open and close in the thick body, as well as a high and low in the candle wick. These visualized tools are instru Read this Term patterns
5. Certain technical indicators, as will be presented

In a nutshell, Nasdaq’s recent 18% rise, from apx. 10750 to 12700, seems solid and I show below where I see signs of support for that. In light of the recent price action, I am looking at 13000 as the next target for the Nasdaq.

NQ weekly analysis according to support and resistance

The levels of resistance and support define the boundaries between the ranges in which an asset's price is most likely to encounter selling pressure (resistance) or buying (support).

NQ weekly analysis according to moving averages

One sort of trend-following indicator, moving averages plot the asset's average price over a specified time period. The market's patterns and possible turning moments may be detected with the use of moving averages. The following weekly chart with the 20EMA shows that bulls are in control. Watch if and when a weekly prices closes below the 20EMA, then bears will probably regain control.

NQ weekly analysis according to trend lines

Understanding an asset's price trend may assist traders decide when to join and exit deals, particularly because trends frequently last longer than expected. In the case our current Nasdaq weekly analysis, price must maintain above this key annual resistance line in order to maintain their bullishness.

NQ weekly analysis according to candlestick patterns and the RSI technical indicator

Candlestick patterns are a specific kind of chart pattern that may be used to get insight into the nature and magnitude of price changes over a given time frame. Candlestick patterns are even a more reliable method for forecasting market reversals and validating the persistence of trends, when the technical analysis includes the use with a popular technician indicator such as the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD), and/or Bollinger Bands

See how the above relates to our Nasdaq weekly analysis:

Nasdaq index technical indicators are neutral to positive

Technical ratings by TradingView help traders and investors find profitable trades. The below is a technical rating for the Nasdaq index on the weekly timeframe. It employs moving averages, the Ichimoku Cloud, the relative strength index, stochastic, the commodities channel index, the average directional index, the amazing oscillator, momentum, the MACD, the stochastic RSI, the Williams Percent Range, the Bulls and Bears Power, and the Ultimate Oscillator ratings.

Based on the average rating value of the indications, the software advises Strong Sell, Sell, Neutral, Buy, and Strong Buy. Moving averages and oscillators are the two primary forms of indicators that are assessed separately. The histogram of Technical Ratings displays values above and below the zero line in red, blue, and gray bars. The MAs, oscillators, and rating round out the histogram.

In Summary, Nasdaq is looking firm on the weekly timeframe

The recent rally seems to be justified, based on the previous technical hints. Still, it might start to be looking extended soon, so do watch the area of 13000 next, as profit takers might be waiting just above.

Do you agree or disagree with the above analysis and general bias? Have you got any thoughts to add? Please provide your inputs below in the comment section, and always trade the at your own risk. Do visit us at Forexlive.com for additional views. Thanks.