New yr, new begin. Tech shares are lastly displaying indicators of life and inventory market bulls couldn’t be happier.
And it couldn’t come at a greater time.
As we speak’s weekly chart of the highlights this reversal of fortune and imparts some knowledge about pattern traces and help.
Nasdaq Composite Weekly Chart
As you possibly can see, the Nasdaq has been in a 13-year rising pattern; see its pattern channel marked by every (1). It touched the highest of this channel at (2) and started a steep decline into final yr. Extra just lately, nevertheless, it appears to have examined its 13-year rising pattern help at (3), the place it seems to have created the next low.
Energy of late has the Nasdaq buying and selling again above its 200-week shifting common line. If this main tech index can maintain above this shifting common and pattern help, it might be bullish for the market’s prospects this yr. Keep tuned.
