2016-06-28 12:49:25

Review and dynamics
After the sharp decline during the two previous trading days, caused by the UK referendum, with the opening of today’s trading day, US stock indices are slightly recovering. The Nasdaq Composite index rose by almost 1.0%, trading at the resistance level of 4235.0 (Fibonacci 38.2%, the lower line of the descending channel on the daily chart). However, investors’ concerns about the future of the UK continue, restraining activity and resumption of purchases of the risky assets.

Our opinion
Over the past two days the index Nasdaq Composite has returned to the levels of February and has broken the crucial support levels of 4410.0 (Fibonacci upward retracement 61.8% to the significant decline in the index since the beginning of the year), 4395.0 (ЕМА200, ЕМА144 on the daily chart), 4320.0 (Fibonacci 50.0%), 4300.0 (ЕМА144 on the weekly chart), 4258.0 (ЕМА200). Now the index is traded near the level 4235.0 (Fibonacci 38.2%). If the index continues to recover and grow, the above levels, which become resistance levels, will be broken down.

Only consolidation of the price above the level of 4410.0, will give a chance that the uptrend can resume.

Meanwhile negative dynamics prevails.

On the daily, weekly and monthly charts the indicators OsMA and Stochastic give signals to sell. However, the indicators on 4-hour chart give signals to buy. In order to clarify the situation and continue to place sell orders, it is advisable to wait until indicators on 4-hour chart will change their recommendations.

It will be advisable to open long positions if upward correction continues and the indicators on the daily chart will go to the positive territory.

Support levels: 4180.0, 4125.0 and 4100.0.
Resistance levels: 4235.0, 4258.0, 4300.0, 4320.0, 4395.0 and 4410.0.

Trading tips
It is safer to stay away from the market. However, for the active traders we give the following tips:

Sell Stop: 4215.0, 4198.0. Stop Loss: 4240.0. Targets: 4180.0, 4125.0 and 4100.0.
Buy Stop: 4240.0. Stop Loss: 4215.0. Targets: 4258.0, 4300.0, 4320.0, 4395.0 and 4410.0.

Today’s recovery in the index
Today’s recovery in the index

At the level of 4235.0
At the level of 4235.0