The Nasdaq index is sharply lower today and in the process tested its key 100 hour moving average at 15913.60. Support buyers came in against that technical level and have so far held support. Prices bounced back up toward the 15950 currently.
Looking back, the price since the January low has broken below that 100-hour moving average on a few occasions, but bounced back. Will we break below that level today?
If so, the 200-hour moving average at 15758 would be the next key target (green line in the chart above).
Back on February 24, the price moved down to test that moving average, and found support buyers. Going back in time, the last time the price traded below its 200-hour moving out for an extended period time was at the beginning of the year.
First things first, if the NASDAQ index is going lower, it needs to break below its 100-hour moving average and stay below that moving average level. Watching 15913.60 (and moving higher) for close bias shift clues.
This article was written by Greg Michalowski at www.forexlive.com. Source