Nasdaq

U.S. futures are being closed in the black for a third day out of four. Technological Index Nasdaq is the leader. Earlier in May traders used to see a ‘Head&Shoulders’ pattern in this asset, but this pattern broke as soon as a big trend has been resumed. Now we have a very alike situation, when lots of traders speak of a greate 10-15% correction, but we have only seen less then 4%. It’s hard to make decisions in this point as we are in a middle between the bottom of the correction ($92.90) and its peak ($97). Сonsidering the geopolitical instability in the Eastern Ukraine, in Iraq and in Gaza Strip, I see two possible scenarios. The question is: what will we see earlier — either a new vertex, or a new bottom.


Apple

Apple closed near the top and restored all its key moving averages. We had a few tips for such a growth. The first one was when sellers failed to hold up the price below the previous bottom of $94.10 and a reversal candle formed. The second one was when a short-term descending channel was broken the next day. There was a little gap up on July 31 from $97.16-.67 to resistance zone near the top $99.44. Penetration and confident upper closure will open the door to new highs. 8/21 EMA ($95.65-$96.00) — the support above which sellers will feel uncomfortable.

Bank of America

Bank of America lags behind the market, ant usually that indicates some weakness. Key level in this action is $15.30, the breakdown of which previously led to a drop to $14.85. Now it acts as a resistance and underneath a bear flag has been formed, breakdown of which will attract more sales. Potential entry points are marked on the chart with orange bands.

AUD/USD

AUD/USD formed a reversal candle on August 8. After testing the bottom this pair built a series of rising peaks — traces of buyers. Pullbacks, retreat from the support levels, breakdown of resistance levels will work best in a given currency pair.