Nasdaq 100 stock (NASDAQI:NDX) recently experienced a minor correction in the context of an uptrend. That was a normal action in the market as it is not expected to go up in a straight line. In a normal uptrend, a series of higher highs and higher lows are the norm.
4 EMAs are used for this analysis and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top right hand of the chart. All the EMAs are sloping upwards, confirming the current bullish bias in the market.
The market was bullish before March 2020, when it dropped sharply, only to start rising significantly in April till now. There is a minor pullback which causes the price to test EMAs 10 and 20; and as long as EMA 50 is not tested, no pullback should be taken serious.
A rise higher in price is expected from here, which would make NDX reach the supply zones at 11,000 (which was previously tested), 12,000 and 13,000. These are the targets for the remaining part of this year.
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