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Nasdaq 100 Rising Wedge Pattern

/NQ (Nasdaq 100 futures) appear poised for a breakdown below this 60-minute bearish rising wedge pattern (second chart) with a likely reaction off the 6773ish level followed by a thrust down to the 6704ish level.

In this thread within trading room earlier today*, I posted shorting /NQ just off the highs targeting the 6772ish support level with the possibility of extending my target to just above the 6700 level along with the first chart below. Upon further review of the charts, I have decided to let my position ride, targeting just above 6704 with a stop at entry to assure at least a breakeven on the trade. I can see a decent chance of a  reaction off the 6773ish support before a continued move down to the 6700 area although I think any reaction will be relatively minor & fleeting & as such, I plan to ride out any bounce as long as my stop isn't hit.Previous & updated 60-minute charts above along with the 60-minute chart of QQQ listing potential pullback targets that was posted under the same thread in the trading room earlier today.

This is an unofficial trade idea with relatively shallow price targets, best suited for active traders comfortable with quick, counter-trend trades. The support levels on the charts above can also serve as potential entry points for those looking to add long exposure on a pullback.

*The link to trading room posts will only work for Gold level & free trial members.

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2018-01-16T13:11:14+00:00Jan 16, 2018 1:08pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , , |3 Comments

3 Comments

  1. rsotc January 16, 2018 2:34 pm at 2:34 pm

    Both the 6774 price support as well as the uptrend line support have been taken out with impulsive selling, opening the door for a continued move down to the 6704 area.

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  2. rsotc January 16, 2018 3:58 pm at 3:58 pm

    QQQ bear flagging on the intraday charts which is likely to play out for more downside in the AH & pre-market session for gap down at the open tomorrow.

    1+
  3. rksleung January 16, 2018 6:00 pm at 6:00 pm

    It never pans out as the chart depicts. They always handicap it!

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