Now that you’ve learned about Fibonacci Price Theory and how major and minor Fibonacci Price Pivots help to map out true price structure, we’ll continue our research article illustrating why we believe a deeper price low should take place before a true bottoms sets up in the US and global markets.
Our researchers use a host of available tools and proprietary price modeling systems in an attempt to identify the most likely outcome of future price activity. Within this article, we’re focusing on the Fibonacci Price Theory and our Adaptive Fibonacci Price Modeling system. We just taught you about Fibonacci Price Pivots and how to use them. Now, we are going to go into a detailed analysis of deeper Fibonacci price theory with the NQ (NASDAQ).
Daily Nasdaq Fibonacci Chart
This Daily NQ chart, below, should show you a whole new world if you are viewing the chart bars in the Fibonacci price structure. The recent highs in price, near 8000, have established a minor Fibonacci High Pivot. There is another minor Fibonacci High Pivot back near 9000 in the midst of the sell-off. There are others in this chart as well – see if you can find them.
The structure of price based on Fibonacci Price Theory continues to suggest that resistance will be found near the 7875 or the 8210 levels in the NQ that may prompt a strong Bearish price reversal. The NQ price would have to rally to levels above 9000, at this point, to qualify as a potential Bullish trend based on Fibonacci Price Theory. The minor price pivot high near 9000 can be interpreted at a Major Price Pivot because of the size of the downside price move.
Weekly Nasdaq Fibonacci Chart
This last chart highlights our Weekly Adaptive Fibonacci Price Modeling system and shows the GREEN Trigger Line on the right side of the chart. The Bullish Trigger level on the NQ Weekly chart is at 8200. This suggests that the NQ price would have to rally and close above the 8200 level to have any type of early confirmation of a potential bullish price trend. If the price were to fail near 8200 and fall below this level, then the bullish trigger is negated.
You can see what our research team expects to happen by the drawn levels on the chart below. We believe a deeper price low must complete in order for the proper Fibonacci price structure to set up a bottom. The next Major low price pivot for the NQ is the 2018 low level near 5824. It is very likely that this level will become the next downside target should the current NQ price rally fail. Remember, failure to establish a new price high means price must attempt to establish a new price low.
