NEW YORK (TheStreet) — The Nasdaq Composite Index is up 0.8% to $5,096.60 in trading on Friday and is the subject of today’s Trifecta Stocks ‘Chart of the Day’ analysis.
The composite index recently reached highs it has not seen since March 2000, however analysts Bryan Ashenberg and Bob Lang do not see the Nasdaq as being overbought yet based on momentum indicators.
The Moving Average Convergence Divergence (MACD) is on a buy signal and volume trends have been very positive.
The Relative Strength Index (RSI) shows this index has actually been performing the best since early April, with the SPX 500 right behind it.
There was potential for a nasty looking head-and-shoulders pattern that was rejected soundly on Wednesday and Thursday. We could see about 10% more to the upside now (to around 5500).
DISCLOSURE: Trifecta Stocks focuses on specific equities and thus has no positions on the entire Nasdaq Index. This Alert is a technical analysis of its chart, and we are not taking any action at this time.
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