Daily NASDAQ Trading Setup
Daily NASDAQ Trading Setup
by: Colibri Trader
Last time’s trading analysis has turned out pretty much as expected. All-in-all range trading and not a great long/short opportunity. It seems like DAX will really spend some more time in hesitance. Now, it looks more bullish than bearish, but it is still not giving a clear indication of trend direction.
I am curious to see if DAX manages to break through the 12250 barrier and hold there for a while. It is very likely that it will fail those highs and go lower.
Since I am not convinced in any of those two scenarios, I will leave DAX on the sidelines for the time being.
Daily NASDAQ Trading Setup
It has been a while since I last spotted a NASDAQ trading setup. It is definitely not my “cup-of-tea”, but I am sure there are plenty of you out there trading it.
It seems like NASDAQ is failing to make a new high. So, if not a new high, maybe it is ready for a small/medium dip.
Price action is confirming this point of view. There is a huge bearish engulfing candle on the daily chart. I am curious to follow the intraday price action and possibly a bullish rejection around 5930 could be an indication of a weakness.
If you have your own reasons to short NASDAQ, this might be just one more reason. I will be following closely tomorrow and decide if the R:R is worthwhile taking this trade.
A hypothetical stop-loss could be above 6000. A possible price target might be first 5800 and then 5600 (depending on PA).
Happy Trading,
Colibri Trader
p.s.
If you have not downloaded the free risk spreadsheet, check out my recent article on Money Management
You might also check how I analyse Symmetrical and Ascending Triangles
Hi Colibri,
Thanks for putting together this article, for the NQ that bearish daily candle has had much bearish rejection.
Looking back at last weeks weekly candle it shows indecision in the doji form.
This weeks trading so far is inside action, the US is in earnings season and the daily price action could be a reflection of just that.
(just my thoughts, you probably know better but then time knows more again)
I am monitoring 5840 as a line in sand for longs and 5996 LIS for shorts.
I understand you are just alerting us and not taking positions yet, as well I am only sharing comments for now
BTW my usdcad post was your idea I just added a bit of confirming thoughts as is at the 1.244 level as I can see what you meant it is gaining some strength now though.
On another note, I am perplexed at the DOWs run and the diverging DAX as well the SP500 is not following DOW ??
The most vocal and an investor I like is Jim Rogers, he is starting to squak about a big correction and Soros has added to his putl options for the SP500. The news is not new but interesting one the less.
To share some clarity on my part I AM A PRICE ACTION TRADER I’m not trading according to these views. I trade the Colibri way only and this is simply free commentary.
But I do accept donations via ppal 🙂
Do you think technicals matter less during earnings season ? Just an open ended question for you
Hi Dan,
These are very good observations! I will be watching the US open session for a better hint. So far, nothing really special this morning.
Regarding the divergence between the indices- I believe that usually happens around major turning points. I think I have mentioned this before, but wanted to reiterate it.
Let’s keep it simple- let’s keep it price action!
Regarding the earnings season- that is definitely a different type of beast.
“Regarding the divergence between the indices- I believe that usually happens around major turning points. I think I have mentioned this before, but wanted to reiterate it.”
Yes you did mention this, I retain just about 99% of what you say.
NQ continuing to chop sideways as seen on daily, if you looked at weekly candles now a pretty nice confirming sentiment. But week isn’t over so will check friday.
Your right now is the time to exercise patience tops are interesting things everyone wants to pick them at some time in thier trading career but how many can consistently ??
PTJ has been known to do this but there are few traders like him.
Anyway enjoying the ride toward accurring more experience,
It really is a game of resilience and money management.
Some luck too 🙂
Hi Colibri,
Interesting price action weekly it doesn’t look bullish. You could be onto to something
Monitoring ….
Cheers
http://fxpro.ctrader.com/c/j6qpn
Interesting indeed! I am looking at all major US indices and all of them seem pretty weak. They are not my cup-of-tea, but with so much going on around the world and US involved, I will not be surprised. From a purely technical point of view, it looks like they are really taking a break. A break that might turn into a sell-off if price holds a bit longer there. It will be an interesting week to watch…hopefully I am wrong
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