The stock markets are getting more challenging to find long trades right now.
But they still can be found for safer opportunities in the right indexes, index futures contracts as well as individual stocks of successful companies.
This week, after some additional days of research, analysis and deliberation, we have a long trade idea for the week in the Nasdaq 100 Index futures contract (NQ).
As we do for full transparency and public review, the idea is also posted on our TradingView page here.
How the Chart Sets Up for the Trade
Here’s how the NQ is setting up this week in the chart trading patterns for a near-term long trade opportunity idea…
The NQ daily time is in a down channel. The market is just above a down Fibonacci extension price point 12,282.50.
Once or if the down Fibonacci extension is hit, the market could either…
A) Push bullish back towards resistance price point 14,045.50, about +6,517 ticks above the market or…
B) Break support and continue to sell off.
It will be a good idea to wait for the market to hit the down Fibonacci extension price point 12,282.50 and then let the market give the direction by either entering into the buy zone or the sell zone.
Once we have the zone, we can create the next entry plan.
The Bottom Line
Sure, the markets are challenging right now. But that doesn’t mean that the right research can’t unearth great new trade ideas for us.
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
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Keep on trading,
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