January 13th recap and 14th Predictions
What to Expect in the Analysis Below
With the ninth trading day of January completed, let us see how the day played out and what to expect tomorrow.
Above you will see the full view of the Daily chart; Top and Bottom indicators included.
As always, we will start by analyzing the Top Half of the Daily chart; seeing how our horizontal Support and Resistance Lines played out during the day, reviewing the Moving Averages that came into play as well as comparing previous candles.
From there, we will analyze the Bottom Half of the Daily chart to see what the momentum looks like going into tomorrow with the additional MACD and RSI indicators.
Ultimately, we will use the combined data to help anticipate the movement of the NASDAQ for tomorrow.
Top Half Analysis
Yesterday’s worse case prediction pretty much happened to a tee.
What looked to be an attempt to close over the 8 Moving Average and 100 Moving Average lines was nothing more than a fake-out back to the bottom. Yesterday we stressed that breaking above more than one Moving Average is very difficult.
Now we find the Daily Candle below 3 of our 4 Support lines, with the 200 Moving Average and our last Support line pretty much at the exact same place. We need this to be a major Support and hold this heavy drop we are in.
Bottom Half Analysis
Just as we mentioned in the Dow Jones Hourly Chart today, the NASDAQ’s MACD and RSI indicators are finally aligning (unfortunately, they aligned that things are shitty!)
We now see that the Green line in the MACD took a sharp turn down, instead of up, dashing any hopes for a curl over the Red line. With a declining slope and increasing gap between the Green and Red lines, there is very little to interoperate here expect really bad momentum on the way.
Seems like the RSI was showing the real truth this whole time - the Green line continuing the downtrend and now the MACD follows.
This is why it is always important to look for aligned messages from your indicators. When something seems off, generally, it may be a foreshadowing sign.
Hourly Analysis
Sadly, there is really little analysis needed in the Hourly Chart above.
This thing is simply UGLY!
What started relatively decent, with the first hour closing above the 8 Moving Average, quickly turned horrible with no recovery ever showing.
The only 2 green (positive) candles were very minimal, and never got even close to 50% of the previous candle.
As the Moving Averages and Support Lines came, they were quickly lost and the downtrend ran pretty much all 7 trading hours.
Final Thoughts and Targets
With nothing but bad news on the Daily and Hourly charts of the NASDAQ, it seems we will be continuing this downtrend for at least a bit longer.
Our best hope would be that the yellow Support line and 200 Moving Average line in purple are strong enough to catches this fall; otherwise, we could be heading down even lower.
If we lose this major support, we will need to look at previous history to create new support lines to track the fall.
Good luck trading!
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