Nasdaq100 - Price Found Rejection at $18230; a Relevant Resistance Level
Resistance zones have to be analyzed looking for signs of rejection, like bearish candlesticks or overbought oscillators.
Since the candle shows indecision with a high wick, and Williams%R is overbought, there are good chances for a reversal.
Volume at price, another key technical suggesting resistance:
High volume at a certain price level can indicate concentration of sellers. These sellers may be investors who bought at that price previously and are now taking profits, or new sellers who see the level as a good price to enter a short position. This concentration of selling pressure can push the price back down, creating resistance.
Considering the chart, entering longs suggest tight stops, since Probabilities and Risk Reward favor a pullback. Not a crash though, see the Volume base with the lower edge at $17500 and the price proximity with 50DMA.
Cautious for the very short term, bullish medium and long term, even more when 20DMA crosses 50DMA. $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $ProShares UltraPro Short QQQ(SQQQ)$
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- maroketo·05-13The high wick on the candle and overbought Williams%R suggest a pullback.LikeReport