New 12 months, new begin. Tech shares are lastly displaying indicators of life and inventory market bulls couldn’t be happier.
And it couldn’t come at a greater time.
At the moment’s weekly chart of the highlights this reversal of fortune and imparts some knowledge about pattern traces and assist.
Nasdaq Composite Weekly Chart
As you’ll be able to see, the Nasdaq has been in a 13-year rising pattern; see its pattern channel marked by every (1). It touched the highest of this channel at (2) and commenced a steep decline into final 12 months. Extra lately, nevertheless, it seems to have examined its 13-year rising pattern assist at (3), the place it seems to have created the next low.
Energy of late has the Nasdaq buying and selling again above its 200-week shifting common line. If this main tech index can maintain above this shifting common and pattern assist, it could be bullish for the market’s prospects this 12 months. Keep tuned.