Read breakout analysis of the Nasdaq Composite (IXIC) index based on technical candlestick chart. The Nasdaq exchange is known for being home to many technology and growth-oriented companies.
When you read this article, you should use the spot price as the reference point for the valuation of the IXIC index, not the future chart price.
Nasdaq Breakout Analysis 2024
In our previous analysis, we pointed out one crucial level at 13330, which worked like a charm. It first broke and reclaimed that level for a while, but failed to sustain and made a new dip toward mentioned at 12750.
In fact, the Nasdaq index dropped even further 200 points. Then after, it reclaimed the previous break level again, and the market turned into an unstoppable and resilient bull run. Now read fresh outlook,
Observing the daily time frame chart, we can see that the index has broken above a crucial resistance level of 14350, which was tested multiple times in the past.
This level has now turned into reliable support and will strengthen the bullish momentum in the future.
As long as this level holds, there will be opportunities to move toward the all-time-high level of 16212, the next major target for the bulls.
Analysis published date: January 20, 2024, Saturday.
September 2023 published Analysis
The daily timeframe chart shows that a significant closing basis support was broken last week. 13330 is an important level in the daily time frame. This is indicated by the white-colored dashed line on the chart.
If you look at it from the technical pattern point of view, it might resemble a head and shoulders chart pattern. Accordingly, the price should go around the 12750 level.
An investor can wait for an upside move until the index reclaims the 13330 mark, or enjoy a bearish move until it reaches to mentioned level. (Old analysis date: September 27, 2023, Wednesday).
About the Nasdaq Composite (IXIC) Index
As per the available data, the Nasdaq Composite stock market index has given decent returns in 4 out of the last 5 years. From the year 2019 to 2021, returns have been given on an average of 35%, while the 2022-year return is down -33%.
In the year 2023, it achieved a remarkable growth of 43%, driven by technology companies. The calculation is based on the January open price to the December end closing price.
There has been a jump of more than 4700 points so far in the previous year. The index touched an all-time high of 16,212 three years back in November 2021. And from then till November 23, the $IXIC has been making lower lows and lower highs.
On the downside 12,000 is a major long-term support. This can be easily seen by checking the weekly view on a technical candlestick chart.
Investors and traders use the IXIC index as a way to track the performance of the technology and growth sectors of the US stock market. For example, if the index is going up, it generally means that the technology and growth companies listed on the Nasdaq stock exchange are performing well. Conversely, if the IXIC is going down, it may indicate that the above sectors are struggling.