Nasdaq Takes Five on a Crucial Resistance

I don’t think that anything negative can happen on the last trading day of the month, although the European session is a bearish one. That’s understandable, seeing as the last four trading days were very bullish.

Will the FED Ease?

Fundamentally, we have a few factors here. Experts point at the FED, where we’re expecting a more dovish approach to increasing rates, in which case the second half of the year may not be so aggressive. Moreover, many experts point at China where Covid restrictions are easing, which can generally be considered as good news.

Respecting the Fibos

Technically, the situation definitely favors buyers. The price created a double bottom formation (yellow) on the 50% Fibonacci. What’s more, we broke the down trendline (red), which in theory cancels the negative sentiment. What’s worth mentioning is how the price is respecting the Fibonacci levels. First, we had this 50% and now, the price is stopping on the 38,2%. We may say, that when the 38,2% is broken, a proper, and strong buy signal will be triggered. The one that shouldn’t be ignored and the one that many are waiting for.

The positive sentiment will be cancelled when the price breaks the 50% Fibonacci, which for now, is less likely to happen.