The NASDAQ has held above the key 4,800 level for two weeks now and, although the monthly candle doesn’t close until next week, a February close above 4,800 is looking quite likely. A monthly close above 4,800 will be significant and may enable numerous trading opportunities on NASDAQ stocks so watch for the candle close next week BUT start doing your homework now!

I have written many articles about the NASDAQ and some of these can be found through the links here, here and here. I also gave two presentation on this topic last week in Sydney at the ATAA and at Invast. The timing of these presentations was quite fortunate as the index is currently up testing the region I have been waxing on about for many months now. It is my thesis that a monthly close above 4,800 on the NASDAQ will trigger a bullish triangle breakout similar to those already seen on the S&P500 and DJIA. This may create trading opportunities on NASDAQ stocks so traders need to do their homework and establish how they would take advantage of any trading opportunities presented. However, failure to close above 4,800 may see the index pullback before any further attempt and would be pause for caution.

NASDAQ monthly: a February close above 4,800 would be a bullish signal and trigger an ascending triangle breakout on the NASDAQ:

The older and higher profile US Indices of the S&P500 and DJIA have already made ascending triangle breakouts:

S&P500 monthly: an ascending triangle breakout evolved in 2013:

DJIA monthly: ditto here:

Russell 2000: The ‘bellwether’ Russell 2000 is also attempting a bullish breakout above 1,220. Many traders are skeptical of bullish continuation with US stocks BUT I would not be expecting this small caps index to be rallying if a broader based stock roll was looming:

NASDAQ daily Ichimoku: The daily chart of the NASDAQ reveals that it has recently broken above the Ichimoku Cloud and triggered a new Tenkan/Kijun cross bullish signal:

There are never any guarantees with trading, especially in the current volatile markets, but I will be watching for any monthly close above 4,800 on the NASDAQ and, then, for any bullish signals on my watch list of NASDAQ stocks. The bullish signals I will be watching for do not relate to any complex algorithm but, simply, for a close and hold above a key support/resistance region. It’s that simple! The stocks and levels I am watching are posted below but remember there are around 3,000 NASDAQ stocks so check them out for yourself! Make sure you perform your own Due Diligence prior to ANY trading and only trade with risk capital that you are prepared to lose because that is always a possible outcome.

NASDAQ Stocks: stocks and levels I am watching. My preference is to find stocks breaking above key S/R levels but that have a history of trading at much higher ‘highs’:

QQQ: watch the $120 level:

AMZN: watch for any Bull Flag continuation here as the potential move, according to technical theory, could be worth $300:

EBAY: watch for any close above $60 to suggest a triangle breakout move to $110. Again, this is calculated according to technical breakout theory:

INTC: watch the $35 level. Note the history of a much higher ‘high’ here. This should make it easier for price to ultimately rally as it won’t have to break into new territory:

MSFT: watch the $37:

AAPL: a bullish Cup ‘n’ Hadle with target of $140 is almost complete here but a move back up to the pre-stock split price of $700 could be next:

AMAT: watch the $24 level. Again, note the history of higher ‘highs’:

ATVI: watch for a hold above $19 and the triangle breakout:

GILD: watch trend lines for any Bull Flag breakout that could be worth $100:

FB: watch for any continued triangle breakout:

BBBY: watch for any new close and hold above $80:

CONN: watch for any wedge breakout and hold above $20. Again, note the previous history here of much higher ‘highs’:

CSCO: watch the $30. Decent history here too:

FAST: watch for any triangle breakout:

FEYE: watch for any hold above $40:

GRMN: watch for any close and hold above $60:

HBAM: watch for any triangle breakout and hold above $10:

JRJC: watch for any close and hold above $10:

MU: watch the $20 and $40 levels:

NTAP: watch for any triangle breakout and the $60 level:

TRIP: watch for a hold above $70:

TTWO: watch for any close and hold above $30:

WEN: watch for a hold above $10:

XLNX: watch for any triangle breakout and the $40 level:

YHOO: watch for any hold above $40 and then the $60 level:

QCOM: pulling back now but watch for any move above the triangle and $80 level:

LULU: has bounced up off the 61.8% fib and watch for any breakout above $80:

SNDK: watch the $80 level:

Z: watch for any continuation from the triangle breakout: