Nasdaq finds buyers near the 100-day MA
Major U.S. stock indexes are up, with the NASDAQ index leading the way with a gain of around 0.72%. Looking at the daily chart, today’s price moved back below its 100-day moving average at 15,620.60. The low price reached 15604.73. However, the price could not stay below this level and returned towards the highs of the day.
Yesterday, the price also fell below its 100-day moving average, only to rebound and close just above the closing moving average. Two attempts and two failures to lower the price and further tilt the technical parameters downward.
Buyers still play a technical role. It would take a 100-day moving average to disappoint buyers (at least in the short term).
At the top of the daily chart above, the 50-day moving average sits at 16053.07. Ultimately, it would take a move above the moving average to give buyers more confidence and more control from a technical perspective.
Looking at the correction from the April high, the low price extended up to 15,222.78. That was enough for an 8% drop from its record price in March. It’s not 10%, but more than 5%. Was it good enough? Stay above the 100-day MA and things would look good technically.
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