Breaking: Covering losses mainly in Q4 for Nasdaq

Q4, or the fourth quarter, is the last quarter of the financial year for companies. Let's look at some Q4 Review of Nasdaq. The Nasdaq 100 (symbol ‘USTEC’) has started a general upward movement in the beginning of the last quarter of the year trading in a bullish wedge formation. Price respected the boundaries of the wedge until now with the index losing about 2% of its points after the FED meeting and the announcement of a double hike in interest rates.

‘Traders will be turning their attention more on economic indicators in January since inflation and monetary policy are not really on the agenda for the next month since the next FED meeting will be held on 1st of February,’ said Antreas Themistokleous, an analyst at Exness.

On the technical perspective the price has been trading in an ascending wedge formation for the last quarter and currently is at a major support area which consists of the lower boundary of the formation, the 100 day moving average and the 50% of the daily Fibonacci retracement level.

With Stochastic indicator near the oversold level and with the critical support level that is currently trading we might see a correction to the upside in the following days with the first point of resistance laying around the 11,955 area just below the 61.8% of the Fibonacci retracement level.

If we witness a valid break below the lower boundary of the wedge formation then we might see some support around the 11,400 area which consists of an area that combines the lower band of the Bollinger bands, the 50 day moving average and also the 38.2% of the daily Fibonacci retracement level.