exc-651a3b7d312b225fa9cde78e
NASDAQ Long and Short Term Elliott wave Forecast Mar 22, 2024 Long Term: On the 5 year chart, the 1st wave In NASDAQ was 6550 to 16,250 The 2nd wave was the zigzag drop from 16,250 to 10,250 We are currently in a Wave 3 with a high target of 25,000 if it travels 1.618 X the length of the 1st wave Short Term NASDAQ: After a week of sideways to down action, the NASDAQ emerged in a Wave 1 from 15,950 to 16,530 which broke a new all time high and in the past couple days retraced in a Wave 2 or Wave 4. If it’s a Wave 4, the highest target for NASDAQ would be 16,680, but if it’s a Wave 2, a break of 16,530 would setup a move to as high as 17,100-17,200 short term.
NASDAQ Long and Short Term Elliott Wave Forecast for March 22, 2024
The NASDAQ composite index, a benchmark for many technology-driven stocks, has been under the spotlight for its recent Elliott wave patterns. Elliott wave theory, a method of technical analysis that looks at recurring wave patterns, suggests potential future price movements based on past patterns. Let’s delve into both the long-term and short-term Elliott wave forecasts for NASDAQ as of March 22, 2024.
Long-Term Forecast
Taking a look at the 5-year chart of NASDAQ, we observe distinct wave patterns that have shaped its trajectory over the past years. The initial wave, termed as the 1st wave, spanned from a low of 6,550 to a high of 16,250. Following this bullish momentum, the market experienced a corrective wave, known as the 2nd wave. This wave manifested as a zigzag drop, pulling the index down from 16,250 to 10,250.
Currently, NASDAQ appears to be traversing its 3rd wave. According to Elliott wave principles, the 3rd wave is often the strongest and can travel a significant distance, often surpassing the length of the 1st wave. If the 3rd wave extends by 1.618 times the length of the 1st wave, we could potentially see NASDAQ targeting a high of 25,000 in the long term. This projection underscores the bullish sentiment that has been driving the index’s upward momentum.
Short-Term Forecast
Zooming in on the recent price action, the short-term Elliott wave pattern provides insights into the NASDAQ’s immediate direction. After a period of sideways to downward movement, the index recently embarked on what appears to be a Wave 1 rally. This wave propelled NASDAQ from 15,950 to 16,530, marking a new all-time high.
Following this surge, the market retraced, entering either a Wave 2 or a Wave 4 correction. If this retracement is identified as a Wave 4, the potential upside for NASDAQ could be capped around 16,680. However, if the retracement is categorized as a Wave 2, surpassing the previous high of 16,530 could pave the way for a more substantial rally. In this scenario, NASDAQ could aim for levels between 17,100 to 17,200 in the short term.
Conclusion
In summary, the Elliott wave analysis for NASDAQ paints a cautiously optimistic picture for both the long-term and short-term perspectives. The long-term trajectory suggests a potential bullish rally targeting 25,000 if the 3rd wave extends as per Elliott wave guidelines. On the other hand, the short-term outlook indicates possible upward momentum, with targets ranging from 16,680 to 17,200 depending on the nature of the ongoing correction.
As always, it’s crucial for investors and traders to exercise prudent risk management strategies and consider multiple factors, including fundamental analysis, when making investment decisions. While Elliott wave theory offers valuable insights into potential price movements, the market is inherently unpredictable, and caution should be exercised when interpreting and acting upon these forecasts.
