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A Comprehensive Review of NASDAQ’s Long-Term Elliott Wave Update (Nov 15, 2023)
Elliott Wave Theory, often used as a crucial tool by financial analysts, provides a roadmap for market behaviour. This article will delve into the specifics of the NASDAQ Elliott Wave update as of November 15, 2023.
In the financial world, the Elliott Wave Theory is a significant concept. It’s a method of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology.
Understanding the Elliott Wave
The theory, developed by Ralph Nelson Elliott in the 1930s, states that the stock market (and hence individual stocks) moves in a series of five waves on a chart. The direction of the principal trend will be followed by three of these waves, while the other two waves will go against the trend.
NASDAQ’s First Wave
For NASDAQ, the first wave started from a point of 10,250 and rose to 14,446. This was a substantial increase, marking a significant bullish trend for the index.
NASDAQ’s Second Wave
However, the second wave saw a large ABC zigzag pattern, which is a common characteristic in Elliott Wave Theory. This wave resulted in a retracement of 50% to 12,550.
Note: A retracement in the stock market world refers to a temporary price reversal in the opposite direction of the prevailing trend.
Predicting the Upward Wave 3
The analysis of the Elliott Waves led to the prediction of a breakout above the top of the B in the 14,100 range. This could potentially set up a sizeable upward Wave 3, possibly reaching up to 21,000.
Analysis of the Breakout
The breakout indicates a strong upward momentum, suggesting that investors’ sentiment is bullish. With the breakout above the top of the B wave, there is a high possibility of a strong upward move.
Potential Move to 21,000
The potential move to 21,000 would be a considerable gain for NASDAQ. This would be the minimum expected move, following the current breakout. That would 1.618 X The W1 into Wave 3.
