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The NASDAQ is a global electronic marketplace for buying and selling securities. It’s a hotbed of activity for traders and investors alike, with the movements and fluctuations of the market providing ample opportunities for profit. One such tool that traders utilize to predict these movements is the Elliott Wave Theory.
Understanding the Elliott Wave Theory
The Elliott Wave Theory, a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors, is named after Ralph Nelson Elliott.
The NASDAQ Elliott Wave Forecast
The NASDAQ Elliott Wave forecast for July 17, 2023, is a prediction made using this theory. According to this forecast, NASDAQ formed a 3 of 3 to 14,231 before retracing .382 of the entire 3 of 3 to 14,082 intraday low.
The forecast further suggests that NASDAQ would need to hold 14,082 the following day and break 14,190 at .786 retrace to set up a 5 of 3. The 5 of 3 would target 14,444 if .618 X W1 + W3.
Decoding the Forecast
This forecast may seem complex to the uninitiated. Let’s break it down:
3 of 3 to 14,231: This means that NASDAQ formed a “third of a third” wave, peaking at 14,231.
Retracing .382 of 3 of 3 to 14,082: Following the peak, NASDAQ retracted .382 of this wave, leading to an intraday low of 14,082.
Holding 14,082 and breaking 14,190 at .786 retrace: For the forecast to hold, NASDAQ would need to maintain the 14,082 level the next day and break the 14,190 level at a .786 retrace.
Setting up a 5 of 3: Achieving these levels would set up a “fifth of a third” wave.
Targeting 14,444 if .618 X W1 + W3: If NASDAQ reaches a 5 of 3 wave, the target would be 14,444, assuming that this is .618 times the sum of the first and third waves (W1 + W3).
Understanding the Implications
The implications of this forecast are significant for traders. If NASDAQ can maintain the levels and retracements specified in the forecast, traders could potentially anticipate a rise to 14,444, offering an opportunity for profit.
