The Nasdaq Composite (INDEXNASDAQ:.IXIC) has been on fire, providing market leadership for much of the way higher off the 2009 lows.
And the Nazzie’s latest move higher has been a vertical ascent. Picking market tops is a risky game… however, knowing where a top may begin to form is important for risk management.
As you can see in the chart below, the Nasdaq is “running” into a key price target zone. It also hit this price target (6200) on a new moon. Interesting stuff.
The target price area is a 1.27 Fibonacci expansion from the 2000 market top and also marks an AB=CD price pattern. This general price area should bring strong/stiff resistance.
That said, the move has come with a strong thrust into this level so traders should be patient and wait for a signal reversal candle on a weekly or even monthly bar before engaging in shorts (in my opinion).
Either way, 6200 appears to be an important price area to watch for the Nasdaq… and broader stock market.
NASDAQ Composite Chart – Top Here?
Thanks for reading.
ALSO READ: S&P 500: Will This Circle Mark The Top?
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Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
