NASDAQ How to prepare for the 2024 Sell off!

6 Jan

As a market analyst, I have recently observed the performance of the Nasdaq, the index of U.S. technology stocks, and my observations are quite significant. In the latest session, the index displayed a rather flat behavior, closing with a modest increase of 0.15%. This slight gain follows a start that was perfectly in line with the previous day's closing values and stability that was maintained throughout the session. From the analysis of the status and trend of the Nasdaq, it's clear that the medium-term structure remains positive. This indicates that, despite daily fluctuations, the general trend of the index is upward over a longer time horizon. However, some signs of contraction are emerging in the short term. This is evident from the index's difficulty in surpassing the resistance level located at 16,660.6. Breaking through this threshold could indicate potential for further upward movement, but until then, it seems the index is in a consolidation phase. The functional support, identified at 16,116.7, remains optimal. This level has provided a solid recovery ground for the index in recent sessions, suggesting that investors are willing to buy when prices approach this point. However, the persistence of the current consolidation phase might see the index testing the lower level of 15,927.4. A move toward this level could be seen as a buying opportunity for those who believe in the long-term resilience of the technology sector, or as a caution signal for those who fear further declines. In conclusion, while the overall picture remains positive, the Nasdaq is currently in a delicate phase. Investors would do well to monitor both resistance and support levels, as well as macroeconomic and sector news, to better understand the future direction of the index. Caution and strategy will be essential in the coming days and weeks.