Home | Finance | Currency Trading
When almost every market everywhere seems to be breaking out into new all-time highs, that's a strong bullish sign! But with so many markets in uncharted territory, it makes it hard for the technical analyst to know just how far a rally might run. Where will the next level of resistance be that results in a significant pull-back? Right now there are still two key markets that are way below their all-time highs. Can we use these to identify likely stalling points for the current stock market bull runs? Let's take a closer look: * NASDAQ 100 (NDX) has rallied from a 2002 low of 794 to near 2030 - but it is still well below its record year 2000 high near 4800. * At 18,220 the NI225 (Nikkei 225 Index, Japan) is less than half its record level set almost 18 years ago at 38,957. Looking at NI225 first, it could easily push another 10% higher, but should face a major wall of resistance in the 19,500 - 21,000 range and this could well form the range for a long-term high. If NI225 is to retrace 50% of its 14 year decline, it will eventually carry to 23280, but 20,000 - 21,000 is likely to provide an insurmountable hurdle on the first attempt. NDX has strong resistance close at hand, near 2080. If it manages to navigate through that, the top of its trading channel sits near 2191. So the answer to where the next level of resistance lies may be as close as +2.5% (NDX) or as far as +9.8% (NI225) - the point is that no market climbs higher in a straight line, even when in new territory, so these are two points where we should be on high alert.
Keyword Articles: http://www.keywordarticles.org
Murray Nickel is a mathematician, statistician, and professional trend trader. He offers a free trial of trading signals for market indices and index ETFs, spot Forex, and spot Gold. He also mentors traders aiming to succeed at trading global markets. You can get a unique content version of this article.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
