Chart of the Day: The Nasdaq Could Be Oversold

By
David Russell
-
1061

The Nasdaq-100 has fallen sharply in the last three weeks, but some traders may think the tech-heavy index is oversold.

The first pattern on today’s chart is the sequence of simple moving averages (SMAs). The 50-day SMA is above the 100-day SMA and both are above the 200-day SMA. That may indicate …

For more, please click here to view the related idea and chart analysis on TradingView.

Nasdaq-100, daily chart, with selected patterns and indicators, courtesy of TradingView.
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David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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