NASDAQ: rethink of the key resistance level

I’ve long been seeing the NASDAQ in a bullish ascending triangle, akin to those on the S&P500 and DJIA, and I still am but I’m having a re-think of the key resistance level here. My previous focus was on clearing 4,800 which was just above the previous highest-ever monthly close. I’m now shifting focus to the 5,200 level though as this is the highest whole-number level above, not just the previous monthly high, but also the previous all time high.

NASDAQ monthly: I’m seeing the same triangle pattern but with a slightly higher top to it that needs breaking. I had previously wanted a monthly close and hold above 4,800 but the bar is a bit higher now with a monthly close and hold above 5,200 desired:

NASDAQmonthly

It is worth noting that this recent market pull back has seen the daily support trend line give way. Any break and hold below the monthly support trend line will have me looking for a test of the lower fib levels but, in particular, the 61.8% fib level near 2,800 as this is also the region of the monthly 200 EMA.

Summary: In hindsight a monthly close at the next whole number level above the previous all time NASDAQ high should have been the obvious target for placing my upper resistance triangle trend line :-( However, you live and you learn. I’m still seeing an overall bullish ascending triangle but I am now looking for a monthly close and hold above NASDAQ 5,200 and for this level to be defended in any subsequent pull back move.

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