Can the NASDAQ 100 get another rally going from the long term retracements going back to the 2020 and 2009 lows?
The low on 11/4/22, failed to make a new low and held the long term retracements of 10,800 and 10,500, this was first 38.2% going back to the 2009 low and second, it was 61.8% back to the 2020 low. The rally from it hit 23.6% back to the ATH at 12,000, there was also a major Gann square right there at 11,942.00. It hit this area 3 times without getting two successively higher closes, the first two times held 38.2% of that rally at 11,500, also backed up by a major Gann square at 11,455.
The third spike above 12,000 failed to close above it and is now back at the long term retracements. It is also currently holding 78.6% at 10,800. Following the ONE44 78.6% rule, the upside target is 78.6% the other way at 11,942, this is also a major Gann square. Any rally that fails to get above 38.2% of that same move at 11,350 would be a very negative sign and new lows should follow.
Holding the long term retracements above will give us a long term target of 38.2% back to the ATH at 12,913, this is also a major Gann square.
Failing to hold the long term retracements for the third time will give us a much lower target, so stay tuned.
- If you like this type of analysis and trade the Grain's take a look at our “Weekly Grain update” Premium Membership on our website. As mentioned above our other way of analyzing the market is with W. D. Gann's "Law of Vibration".
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