The Nasdaq has recently been showing some bullish signals that symbolize a possible close to a new level of uptrend. With the strong momentum seen in recent times, it’s likely that the current trend could continue and take the index much higher.
According to M&T Bank, the uptrend could be influenced by the “tri-impact” created by strong earnings, favorable technical indicators, and more encouraging news about the global economy. Although the market is always subject to tremendous volatility, M&T says that the Nasdaq’s current sentiment is being driven by “strong fundamentals.”
In addition, MEM TV has identified bullish signals in the market which indicate that it’s close to a new uptrend. The Nasdaq’s momentum has been spurred by a wave of positive economic news, with reports such as the US GDP growth rate increasing and US unemployment figures hitting a new record low this past April. Coupled with encouraging international financial news such as China’s trade data, the momentum for this index has continued to remain strong.
MEM TV has identified several key levels of resistance within the index. As the index moves higher, MEM TV predicts that the Nasdaq will need to break through these levels to set new higher highs. While there is no clear indication that this trend will continue, these bullish technical signals potential consolidation could be a sign that the index may continue to surge ahead.
That being said, there is no guarantee that the Nasdaq will keep rising and break through these resistance levels. Investors should still observe caution when investing in this market, as large swings in the price could occur at any time. The current momentum should however provide investors with some optimism that the index is moving towards an uptrend.
