Let’s follow up on a chart Dan talked about recently: NDAQ (August 26, 2020)

by DAN NDAQ 
This is Scott with your Free Chart of the Day. I want to take a look at Nasdaq Inc ( NASDAQ: NDAQ ). This isn’t THE Nasdaq but it’s the Nasdaq ( NASDAQ: NDAQ ). Nasdaq ( NASDAQ: NDAQ ) was a company that Dan Fitzpatrick featured on the Chart of the Day just recently.

I really like this setup here because as you can see we have been going sideways for almost a month and a half here on Nasdaq Inc ( NASDAQ: NDAQ ). The price action has gotten really tight and what that has done is, that has brought these Bollinger Bands really close together.

When the Bollinger Bands are really close together what you can get is what Dan likes to call a volatility squeeze, where the price is squeezing really tight between these bands and eventually, we just get an explosion to the upside. That is kind of what I am looking for here on NDAQ ( NASDAQ: NDAQ ).

I am going to set an alert on this at around 133.50. I think if we get a move above 133.50 on higher than average volume this could really start to go. A nice sideways base of consolidation, the moving averages are catching up and it seems to be going up on higher than average volume and pulls back on less volume. So I think this is a good breakout candidate that you should definitely keep on a watch list.

Free Chart