...there is more to prove
After a sharp fall, it is important on a correction to get above the 38.2% retracement. That is the minimum move if the buyers are to take more control away from the sellers.
Looking at the Nasdaq daily chart above, the price has indeed moved above the 38.2% of the move down from the February all-time high. That 38.2% retracement level comes in at 7856.476.
Going forward stay above, and there is room for further upside probing. On the daily chart the next key targets after a move above the high price from yesterday at 8146.43, would be the 50% retracement at 8234.89 followed by the 200 day moving average (green line) currently at 8392.356. Recall that in October 2019, the price bounced off that 200 day moving average. In March, the price gapped below the level and stayed below that level.
Drilling to the hourly chart below, the 38.2% retracement is also joined by swing highs from March 13 at 7874.23 and the swing high from March 31 at 7880.31. The low price from yesterday's trade stalled at 7881.21 – just above those levels. As a result, the buyers are clinging onto short-term control. Stay above the 38.2% retracement and those swing levels keeps that bias in the buyers favor.
As I type, the NASDAQ is trading to new session highs, with the high price just reaching 8018.39. There still is some way to go before we reach the high prices from yesterday, but buyers keep intraday/short-term control.
