Nasdaq Index Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Nasdaq index downgraded from Buy Candidate to Hold/Accumulate after Thursday trading session.
(Updated on Apr 25, 2024)
The Nasdaq index price fell by -0.541% on the last day (Thursday, 25th Apr 2024) from 15,696.64 points to 15,611.76 points. During the last trading day the index fluctuated 1.96% from a day low at 15,343.91 points to a day high of 15,644.51 points. The price has fallen in 7 of the last 10 days and is down by -5.05% for this period. Volume fell on the last day along with the index, which is actually a good sign as volume should follow the index. On the last day, the trading volume fell by -309 million shares and in total, 4 billion shares were bought and sold for approximately 64.99 points trillion.
The index lies in the middle of a weak rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the index is expected to rise 2.32% during the next 3 months and, with a 90% probability hold a price between 15,661.39 points and 16,885.57 points at the end of this 3-month period.
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^IXIC Signals & Forecast
A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 2.16%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Nasdaq index holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the index giving a more negative forecast for the stock. On further gains, the index will meet resistance from the long-term Moving Average at 16,089.91 points. On a fall, the index will find some support from the short-term average at 15,574.75 points. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Nasdaq index
Nasdaq finds support from accumulated volume at 15,509.90 points and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This index is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the index moved 300.60 points (1.96%) between high and low. For the last week, the index has had daily average volatility of 1.78%.
Our recommended stop-loss: 14,736.02 points (-5.61%) (This index has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 4 days ago.)
Trading Expectations (^IXIC) For The Upcoming Trading Day Of Friday 26th
For the upcoming trading day on Friday, 26th we expect NASDAQ Composite to open at 15,533.40 points, and during the day (based on 14 day Average True Range), to move between 15,327.44 points and 15,896.08 points, which gives a possible trading interval of +/-284.32 points (+/-1.82%) up or down from last closing price. If NASDAQ Composite takes out the full calculated possible swing range there will be an estimated 3.64% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at 15,696.64 points (0.54%) than the support at 15,509.90 points (0.65%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is NASDAQ Composite index A Buy?
Nasdaq holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this index since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: -0.383 Hold/Accumulate Downgraded
Predicted Opening Price for NASDAQ Composite of Friday, April 26, 2024
Fair opening price April 26, 2024 | Current price |
---|---|
15,533.40 points ( 0.502%) | 15,611.76 points |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ^IXIC
Fibonacci Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 15,834.00 | 1.42 % | |
R2 | 15,719.17 | 0.688 % | ||
R1 | 15,648.23 | 0.234 % | ||
Current price: | 15,611.76 | |||
Support | S1 | 15,418.57 | -1.24 % | |
S2 | 15,347.63 | -1.69 % | ||
S3 | 15,232.80 | -2.43 % |
Accumulated Volume Support & Resistance Levels
Level | Price | |||
---|---|---|---|---|
Resistance | R3 | 16,091.92 | 3.08 % | |
R2 | 15,973.17 | 2.32 % | ||
R1 | 15,696.64 | 0.544 % | ||
Current price | 15,611.76 | |||
Support | S1 | 15,509.90 | -0.652% | |
S2 | 15,282.01 | -2.11% | ||
S3 | 15,164.01 | -2.87% |
FAQ
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