The Nasdaq Composite Index or ^IXIC is a stock market index in the US that has over 3,000 listed technology and growth companies. Some of the notable companies listed here are google, yahoo and amazon. The more-than-expected earnings result last week of US based IT companies such as Apple Inc. helped lead the Nasdaq or the US market as a whole to higher territories. Another company that pushed the markets higher was United Parcel Service which reported an outstanding 2nd quarter profit (kindly check here to see my colleague’s post).
The last time I posted on this (kindly check here), the falling wedge was still forming. Now, as we can see in the chart, the resistance of the falling wedge set-up has already been cleared out. If the Nasdaq manages to climb higher, the next resistance it could encounter is 2,341.11. If the bulls empower the selling pressure once more at 2,341.11, the next resistance could be 2,434.29. On the flip side, if the value of the Nasdaq starts to decline, the immediate support it could drop to is 2,159.95. If it further slips below the 2,159.95 level, the next support could be the 2,061.14.