- 1
The Nasdaq Composite Index (IXIC) faced rejection from $14450 and reverted down. - 2
IXIC price fell 4.89% in the current month and struggles near the 50-day EMA. - 3
The bullish momentum was lost in the Nasdaq Index and $14450 became a supply zone.
Nasdaq Composite (IXIC) price fell 4.89% in the current month and displayed initial signs of a bearish trend reversal. It faced rejection from the $14450 and slowly prices eroded the complete gains of July month.
The Nasdaq Index retraces down to the 50-day EMA which indicates that the positive momentum is lost. However, the price still sustains above the 50-day and 200-day EMA showcasing uptrend.
IXIC price performed well in the past 3 months and displayed a short-term bull run. The rally is fueled by the top few technology companies like AAPL, MSFT, GOOGL, ORCL, NVDA, and a few more.
The craze of Artificial Intelligence has grabbed the attention of investors. Due to this top tech companies’ stocks become the first choice of retail as well as for institutions. However, the rally in these technology companies has now halted and prices now look mildly overvalued.
Apple stock and Microsoft stock are heavyweight stocks in IXIC index. So, if the correction continues then the index might drop below $13500. Nasdaq composite price closed the previous session at $13644 with an intraday decline of -0.68%.
Nasdaq Composite (IXIC) entered short-term correction
Nasdaq Composite (IXIC) price rallied 41% (approx.) from the 2023 lows. At the beginning of May, It broke out of a $12400 hurdle which gained the confidence of bullish traders. Later, in June buyers succeed to break out of the $13200 hurdle.
Meanwhile, EMAs also displayed a golden crossover which technically turns the index chart highly bullish.
IXIC entered into a bull run and rewarded the bullish traders. After rallying for over 7 months, momentum exhausted and profit booking has begun. The technical analysis suggests the correction in IXIC price might continue and it might test $13200.
IXIC Price near to the 50-day EMA
IXIC price is near to the 50-day EMA, so a minor bounce back is possible. But till the price is below $14450 the sellers will remain active on higher levels. The bears look more aggressive so $13600 support is likely to get broken soon.
On the lower side, $13200 will act as immediate support and buyers may try their best to defend the support. If the situation gets worse and the Nasdaq price drops below $13200 then be prepared for $12400.
Conclusion
The Nasdaq Composite (IXIC) price entered the correction phase after 7 months of rally. The technical analysis suggests more sell-off is possible and prices might test the $13200 level in the coming month.
Technical levels
- Resistance levels: $14,000 and $14,450
- Support levels: $13,200 and $12,800
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/08/13/nasdaq-composite-ixic-is-the-ai-bubble-getting-busted/