NASDAQ top is forming
NASDAQ has been rejected from the long-term broadening wedge top 1100 for the second week as it can be seen on a weekly chart. We are within a long-term broadening wedge with well-defined breakout levels. For the upside reversal from here, we need to see a price action break above 11000 which is highly unlikely before the pullback. A break below narrow shaped rising wedge 10600 is indicating that the top is in place and reversal pullback to 9600 has begun.
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On a daily chart, we can see that the instrument is breaking below the long-term rising wedge and a medium-term uptrend channel 10600. Look for the short trade entry with the stop loss above 10900 to target 9650. Our trading system is indicating a potential of 500-1000 points of profit. Look for the short trade entries invalidation to come only on a clear daily close above 11100.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
