NQ1!, The Breakout is confirmed, Approaching a Major Resistance
Today, the price continued to advance tagging 7300 level that was a magnet. The buyers are in firm control. The breakout of the mature balance area is a strong bullish bias. However, there is a potential strong resistance ahead that may cause a hurdle for the buyers. We may see profit take. A retest of the breakout area may offer a nice long opportunity. Usually, the timeframe alignment has a short shelf life. A few days of balancing and the bias starts to shift to neural. Even today, the buyers failure has been spotted on a smaller timeframe that created a nice short setup in the afternoon session. Whether it was triggered by a news or not does not matter. The Algos reversed the direction and trapped some weak hands that had to cover their positions. The price retraced half of the RTH session.
Overall, it was a green day across the indices. The BA continued to drag the Dow down but a strong buying of heavy tech stocks helped the Dow. All indices are correlated.
At this point, buying pullbacks strategy remains intact. Perhaps 7400 is a new magnet. However, short setups may present themselves any time. No need to predict. Any resistance is only a potential resistance. If the sellers gain a short term control on a smaller timeframe then a short setup could be attempted. The important thing is not to overstay.
03/13/2019
Overall, it was a green day across the indices. The BA continued to drag the Dow down but a strong buying of heavy tech stocks helped the Dow. All indices are correlated.
At this point, buying pullbacks strategy remains intact. Perhaps 7400 is a new magnet. However, short setups may present themselves any time. No need to predict. Any resistance is only a potential resistance. If the sellers gain a short term control on a smaller timeframe then a short setup could be attempted. The important thing is not to overstay.
03/13/2019