Nasdaq: Uptrend to continue

B.Krishnakumar

The overall market sentiment was rather lackluster at the Amercan bourses. The holiday on Thursday and the truncated trading on Friday on account of Thanksgiving, curtailed trading activity. After a sharp decline on Tuesday, the benchmark indices staged a come back on Friday.

Falling oil prices fuelled optimism in the American markets. Airline stocks rose on the back of softening trend in global oil prices. Retailers also attracted market interest on hopes that the festive season ahead would bode well for companies such as Wal-Mart, Target Corp., Sears Roebuck & Co and May Department Stores.

During the week gone by, the S&P 500 Index rose one percent, the Dow Jones Industrial Average edged up 0.9 per cent while the Nasdaq Composite Index advanced 0.2 per cent.

As mentioned last week, the Nasdaq Composite Index reversed direction right at the resistance level of 1933. After edging towards 1934.7, the index lost ground during Tuesday's trading. Going by the recent price action, it appears that the Nasdaq Composite Index could continue its recent upward march.

As of now, the index could move past the 2000 mark. On the other hand, a decline below 1780 would blunt the positive outlook. However, as emphasized in the earlier weeks, the ongoing rally is still a correction to the overall bearish trend.

(Note : The analysis and opinion expressed in this column is based on the technical analysis of the past price behaviour. Analysis and price targets are based on Elliott Wave and Point & Figure techniques. There is a risk of loss in trading)