Big tech stocks continue to garner trader attention, particularly those in the primary Nasdaq 100 (NQ) futures index.
Our research shows upside, but the market is currently right on the down trend line.
If the trend line holds, there could be more upside in store. If not, a drop back to the up trend line may take place.
For now, we need to let the market show us the way…
NQ Setting Up a Bull or Bear Run?
Here’s how we see the big tech stocks that are embodied in the Nasdaq 100 Index and its futures contract (NQ)…
The NQ daily time frame broke the downtrend line and entered into the buy zone.
The market is now testing the back side of the old downtrend line where support can hold.
If support holds, the research shows to expect the buyers to push the market up towards the Fibonacci extension price point 14,697.50 about +6,640 ticks above the market.
If support fails, the research shows to expect the market to fall bearish towards support price point 11,392.75 about -6,386 ticks below the market.
It will be a good idea to allow the market to tell us the direction and not for us to tell the market the direction.
What that means is that it is a good idea to wait for the daily candlestick to close…
If the market closes below support, then turning to the one hour time frame and looking for selling ideas will be a good idea.
If the market gives a bullish candlestick and closes above support, it will be a good idea to turn to the one hour time frame and to look for buying ideas in the buy zone.
As of now, it is a good idea to stay out of the market and wait for confirmation.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But my colleague and energy expert Anthony Speciale has a particular focus on the petrol market.
To learn more, check out the important P.S. below…
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Keep on trading,
P.S. My colleague and energy expert Anthony Speciale continues to show the way to profits from the petrol patch…