NDX is possible to form a "Head and shoulder" formation

16.09.2019 / 14:05

Rating:

NDX

Time frame: H4

Technical Analysis: The chart shows an uptrend, which was broken overnight by news of an attack on a key oil facility in Saudi Arabia. This has led to fear among investors who have entered "risk off mode". Currently, the price has not yet closed the gap, and when closing it is possible to form a formation "Head with shoulders". As we know this formation is a trend reversing and after the confirmation of the second shoulder, we can see a new decline to the neckline of the head. Once the price reaches the support it is possible to see a correction to the pierced 23.6 Fibo level and then it will be followed by a new fall for the break of the neckline and activation of the head.

Indicators: At this stage 50 the periodic moving average plays the role of resistance and 200 the periodic support.

RSI is in neutral territory and does not give and signals at this stage.

SL: 8000

Alternative scenario: If the price is able to return in the trend channel and keep in it, then we can see a prolonged rise until the resistance of the channel.

Trader Milko Zashev

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NDX is possible to form a "Head and shoulder" formation

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