Pullback Strategy: NASDAQ Just Ended Pullback, Time For Upside!
Based on what we have seen over the past 5 days, we could see that NASDAQ has been trading in a downtrend since the first trading session for 2024.
There are occasions that $NASDAQ(.IXIC)$ try to make a recovery from the pullback. We finally saw tech stocks recover on 08 Jan 2024.
In the article, I shall share how I use my pullback strategy to determine if the short pullback have ended, and NASDAQ could be on its way for more upside.
Here is a re-cap of how my pullback strategy and conditions summary looks like:
20-day MA and 200-day MA - Pullback Strategy
As we can see that NASDAQ’s last close was below the 20-day MA and above the 200-day MA, just last week, we begin to see that now NASDAQ have move above the 20-day MA period.
This signal that NASDAQ might exiting the pullback period. I shall explain later with another indicator, RSI.
Relative Strength Index (RSI) - Pullback Strategy
As we can see 5-day RSI value have gone to 57.91, which would indicate a BUY signal if it is below 45, with this, it indicate that we would be looking for 5-day RSI to rise above 65, before we exit the position for NASDAQ.
This is also not a good time to buy in, as the 3 conditions for BUY signal is not there.
Summary
Based on what my pullback strategy have been showing me, NASDAQ did have a good opportunity to enter on last Friday (05 Jan), and it seems like it is exiting the pullback period.
I will continue to monitor the tech stocks for the rest of trading week, as I foresee that NASDAQ might show some potential upside.
Appreciate if you could share your thoughts in the comment section whether you think NASDAQ would continue the uptrend till end of week?
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
