Tech Bull Trend Could Change, If Double Top Is Forming
Chris Kimble | Oct 27, 2020 11:02AM ET
Is the bull trend in tech about to end? What tech and its volatility index does in the next few weeks will go a long way to answer this question.
This chart looks at the Nasdaq 100 and its Volatility Index on a weekly basis over the past couple of years.
The trend for the NDX remains up/bullish. No price action of late has changed this trend. It tested its September highs two weeks ago and, so far, those highs look to have held, forming a potential double top.
VXN movement has been shallow the past few months, as it remains inside of a narrowing pennant pattern.
What would stock bulls love to see? A breakout above the September highs and a break of support by VXN.
What would send a concerning message to stock bulls? A break of support at (1) and a breakout of the pennant pattern at (2).
With the election, one week away, which direction the NDX and VXN head over the next couple of weeks, should send a very important message from leadership.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.