I remain very bullish for the NASDAQ100, and expect to see continuation to the upside for the remainder of the year (or at least until next earnings season). However, we are currently on green weekly 9 which usually leads to a 1-4 candle correction. You can see that we have reached the upper Bollinger band, and the last time we did this on a weekly 9 was in June 2018. If you look back to that time, we had a sharp pullback of around 4% over the course of 2 weeks following the green weekly 9. I am anticipating a similar scenario over the next few weeks, which could provide an ideal buying opportunity.
Shorting at this point could be profitable. But considering the strong uptrend we are currently in, the risk to reward is simply too high for me to attempt this trade. If you've followed my previous analysis, you saw me predict the breakout of an Ascending Triangle which is more visible on the hourly time frames. This gives you targets of around 7800, which I'm confident we will reach. It's very possible that we don't get the pullback that I'm anticipating and continue to rise up to that point. But either way, we will get some kind of correction at some point. Whenever that point is, I will become a buyer again.
*** This is not financial advise, purely educational ***
Shorting at this point could be profitable. But considering the strong uptrend we are currently in, the risk to reward is simply too high for me to attempt this trade. If you've followed my previous analysis, you saw me predict the breakout of an Ascending Triangle which is more visible on the hourly time frames. This gives you targets of around 7800, which I'm confident we will reach. It's very possible that we don't get the pullback that I'm anticipating and continue to rise up to that point. But either way, we will get some kind of correction at some point. Whenever that point is, I will become a buyer again.
*** This is not financial advise, purely educational ***
Trade active:
NASDAQ is approaching my first reload point. you can see the 50 day MA has proven to be a good dip buying opportunity. However, we have broken the yellow trend line so I am anticipating the potential for a bigger correction. I will not aggressively buy until we start to see reversal signs. If the 50 day MA doesn't support the price, I will be looking for around 7187 to hold. As long as we stay above the bottom of the green channel, I remain Bullish long term.
NASDAQ is approaching my first reload point. you can see the 50 day MA has proven to be a good dip buying opportunity. However, we have broken the yellow trend line so I am anticipating the potential for a bigger correction. I will not aggressively buy until we start to see reversal signs. If the 50 day MA doesn't support the price, I will be looking for around 7187 to hold. As long as we stay above the bottom of the green channel, I remain Bullish long term.
Comment:
We ended strong today with a breakout from the No Trade Zone. We quickly back tested the support line above 7482, and soon recovered back above 7500. I added some more Long positions around 7500, setting stop losses at 7400.
What I'm looking for is some continuation to the upside tomorrow. I'm not too worried if we retrace back to the No Trade Zone, as long as we hold above 7400. I think this market is ready to start reversing to the upside now, even if it is a bit choppy to start off with. This is naturally how the markets steal from you if you don't stick to a game plan.
MA's trending up on the hourly, and if you check out the 50 MA on the daily charts you can clearly see the price rebounding off it. Sometimes trading these Indices is as easy as that, but we will have to see over the next few days.
We ended strong today with a breakout from the No Trade Zone. We quickly back tested the support line above 7482, and soon recovered back above 7500. I added some more Long positions around 7500, setting stop losses at 7400.
What I'm looking for is some continuation to the upside tomorrow. I'm not too worried if we retrace back to the No Trade Zone, as long as we hold above 7400. I think this market is ready to start reversing to the upside now, even if it is a bit choppy to start off with. This is naturally how the markets steal from you if you don't stick to a game plan.
MA's trending up on the hourly, and if you check out the 50 MA on the daily charts you can clearly see the price rebounding off it. Sometimes trading these Indices is as easy as that, but we will have to see over the next few days.
Comment:
Big pullback this morning but we've held above 7400 so no red flags yet. Like I said before these markets like to steal from you! Recovered quickly, so we will look to get a real breakout soon.
Comment:
Decent finish today, we're looking good. Didn't spend too much time in the no trade zone before breaking out. This time I think it's for real so looking for more continuation into next week.
Starting to get a significant pullback. Approaching support level of 7494, and the yellow dotted trend line . This could be a good place to buy, so keep an eye on it. I'm betting on the price reaching around 7400 over the next few days.