Nasdaq 100 Ready for a U-Turn?

Welcome to Monday, Daily Direction readers!

Today’s stock markets are in a risk-on mode at least for now. In particular, technology stocks are leading traders’ buying. 

This is helping to drive a turnaround in the Nasdaq 100 Index, which is highly weighted with leading US technology stocks.

This is now setting up a trade for this week in the Nasdaq 100 Index e-mini futures contract. The price is now in the buy zone at a known level of U-turn. 

And it also has an upward Fibonacci price level with an extension point that traders should be paying attention to for a great trade opportunity this week.

Here’s the chart showing the trade set up…

Nasdaq 100 Index Futures Contract Price & Technical Analysis – Source: TradingView 

And here’s how we see the trade setting up…

The NQ daily time frame is in an up-trend making higher highs and higher lows. The market is in the buy zone at a low price near a known level of a U-turn. 

The market also has an up Fibonacci level in the making with an extension price point 16,706.25, about +7,110 ticks above the market. 

It will be a good idea to turn to the one hour time frame and to look for low prices in the buy zone.

Traders Training Session: Saint Fibonacci’s Levels Explained!

Fibonacci numerical sequences are an integral part of our higher-level technical analysis. They were adapted from the 12th-13th century mathematician Fibonacci from Pisa in what is now Italy. 

And while the sequencing of numbers and the resulting percentage movements in prices were not the original intent of Fibonacci, they have proven out over the decades as a common and vital tool of technical analysts.

In the following video, we go through how they work and why they work. And we encourage you to watch this brief tutorial, as it will help you to understand the setup in the Nasdaq 100 stock index futures contract above.  

How to Use Fibonacci Retracement Levels

Stay tuned for the next edition of Josh’s Daily Direction.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep On Trading,

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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