Nasdaq NDX - What bearish moves we had on the indices yesterday!
I will now explain why we had this move:
1) FOMC FED - Rates kept as same, nothing new in that aspect. During Questions - We had now the mention Taper tantrum was mention, that's a key word to keep in meaning they could decrease the amount of asset purchase that would increase yields further...
A lot going on here, both technically and fundamentally. Any trades taken will look to move stops to entry for risk free trading ASAP given the volatility of election season and Covid resurgence. We cannot control any fundamentals, but we can control our risk management.
Firstly, on the weekly we can note the potential wick rejections forming a Double...
Daily fib (50% lines up with 4hr resistance)
4hr Head and shoulders
Close above 4hr resistance invalidating H&S
Wait for rejection around 11,400 in line with left shoulder. Failing that, break of the neckline.
4hr Descending Channel
4hr Double Bottom
200ema as ceiling
Descending channel broken on 4hr
Break and close above both 23.6% fib levels
Close above 200 4hr EMA
Confirmation of double bottom if price breaks previous lower high @ 11,200.
Target 61.8% 4hr fib for around 500 points
Close back below both 23.6% Fib...