Nasdaq Stock Boasts Multiple Support Layers

A round of upgrades could provide additional tailwinds for NDAQ

Jan 17, 2023 at 11:37 AM
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Nasdaq Inc (NASDAQ:NDAQ) has layers of technical support in place on the charts. The stock has pulled back to a trendline connecting monthly lows since the pullback to its 36-month moving average in May/June of last year. This 36-month trendline has also marked multiple lows since 2011. Furthermore, this pullback has the stock running into its 24-month moving average, which contained its September/October lows.
 
Earlier last week, NDAQ moved back above a trendline connecting lower highs since last year’s peak. The shares also broke above their 20-day moving average, which served as resistance in mid December.

 

 
It’s worth noting that the stock’s post-earnings movement has been bullish following its last two reports, as Nasdaq is gearing up for earnings on Jan. 25. Plus, the company will make an appearance at Credit Suisse Financial Services Forum on Feb. 13.
 
There is plenty of room for optimism amongst the brokerage bunch, despite NDAQ’s modest year-over-year gain, which could provide tailwinds. Of the 19 analysts in coverage, nine carry a “hold” or worse rating.
 
Nasdaq stock’s Schaeffer’s Volatility Scorecard (SVS) ranks at a 96 out of 100 and has been high since May, suggesting options have been underpriced relative to direction. Our recommended call has a leverage ratio of 6.8, and will double on a 14.5% rise in the underlying shares.  

 

Subscribers to Schaeffer's Weekend Trader options recommendation service received this NDAQ commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 

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