The Nasdaq (NDAQ) exchange has been on a roll lately and it doesn't look like it will end soon.
NDAQ traded sideways the first half of last year, but in September it turned higher, something it has done a number of times from its 2012 low. As the bull pushed NDAQ higher it took prices above the rising 50-day moving average and the 200-day average, too. The Moving Average Convergence Divergence (MACD) oscillator is rising above the zero line -- a bullish signal. The only technical clue not in gear on the upside is the On-Balance-Volume (OBV) line, which turned down in August.
I picked this long-term chart of NDAQ for a reason. Actually several reasons. First, it shows a three-year bottom pattern in 2009, 2010 and 2011 before prices turned up in 2012. One of my mentors and teachers Alan Shaw often said, "The bigger the base, the higher in space." Note that on this weekly timeframe that the OBV line has been rising since 2009 -- pretty impressive. Prices are above the rising 40-week moving average. Now notice the consolidation around the $20 level. When prices rallied they found profit-taking at $40, a double from the $20 level. They found profit-taking again at $60, a triple from the base. I would expect further profit-taking at $80 and $100, both as a round number and as a multiple was a significant low.
Now that you are convinced NDAQ is going higher, be sure to enter a stop loss order when you get a confirmation of your buy.
