Hello traders,
If you are following my TA's, I have been mentioning the potential global market crash, and the sign of speculation is becoming much stronger in last few days.
Looking at NASDAQ composite (IXIC), we see few dangerous signals are starting to emerge.
1) The slope of MA 100 is starting to negative:
This actually happened in late 2015 and we saw almost 20% crash. After that major crash, we start to see that the slope of MA 100 have remained positive for almost 840 days! Therefore, the market sentiment has changed and we can expect sell-off.
2) Breach of ascending purple channel
Similar to my point one, IXIC remained within purple channel for a long time now (fake outs). If IXIC can't go back to purple channel, I am afraid that it will be confined within black descending channel, which signals the beginning of bear market.
3) Potential MA 200 rejection and formation of death cross
So far, IXIC are hovering around MA 200 region. If IXIC finds resistance around that level, we will see potential death cross formation, which is another signal of bear market.
For now, the target for this bear trend is around $6700-$6800, but $5200.
Happy trading!
If you are following my TA's, I have been mentioning the potential global market crash, and the sign of speculation is becoming much stronger in last few days.
Looking at NASDAQ composite (IXIC), we see few dangerous signals are starting to emerge.
1) The slope of MA 100 is starting to negative:
This actually happened in late 2015 and we saw almost 20% crash. After that major crash, we start to see that the slope of MA 100 have remained positive for almost 840 days! Therefore, the market sentiment has changed and we can expect sell-off.
2) Breach of ascending purple channel
Similar to my point one, IXIC remained within purple channel for a long time now (fake outs). If IXIC can't go back to purple channel, I am afraid that it will be confined within black descending channel, which signals the beginning of bear market.
3) Potential MA 200 rejection and formation of death cross
So far, IXIC are hovering around MA 200 region. If IXIC finds resistance around that level, we will see potential death cross formation, which is another signal of bear market.
For now, the target for this bear trend is around $6700-$6800, but $5200.
Happy trading!