Nasdaq losing its grip on rally
QQQ•The Nasdaq Composite ended Friday at 25,955.34, below its 50- and 100-day moving averages and near support levels at 26,063 and 25,803. Further declines could put 25,500 and 25,000 in focus, while gains could face resistance from 26,254 to 27,190.
1. Support under pressure
The Nasdaq Composite is near its record high but has traded in a range for months. It ended Friday at 25,955.34, below its 50-day moving average near 26,599 and its 100-day moving average near 26,254. The index is also at risk of falling below the 23.6% Fibonacci retracement level at 26,063 and the September 16 low of 25,802.96, both of which held during the mid-October selloff.
2. Levels to watch
If the index falls further, chart watchers may focus on a rising weekly Gann line near 25,500. Longer-term support converges around 25,000, including the 38.2% Fibonacci retracement of the March-to-October rally, the June low and the 200-day moving average. A decline to that area would leave the Nasdaq just over 9% below its record close.
3. Potential resistance
If buyers build momentum, the index would first need to reclaim its 100- and 50-day moving averages. Other levels traders may watch include last Wednesday’s intraday high of 26,779 and the June 1 intraday high of 27,190, before the October record peak.
