Nasdaq Already At Resistance?
As projected in our previous chart the Nasdaq has seen quite a rip to the upside but like all good things it must eventually come to an end.
Looking at the 4hr chart for MNQ we can see price has completed a perfect ABC measured move ending right high time frame resistance with overbought oscillators starting to show divergence on smaller time frames.
Being we are technically in a macro down trend this current rally should be thought of as a bull rally in a large downtrend. It is likely that price will trade in this range for awhile before making a decision to continue to the down side or give a clear reversal for new highs.
Personaly I am targeting the down side as price has already made its way back up to high time frame resistance, has completed a full ABC measure move retrace, oscillators are reaching over bought on medium time frames with divergence developing on the small time frames.
While we may not shoot straight down for new lower lows a retrace of our current pump is in order at a minimum.
Currently targeting the 15400-15420 area for a short entry postion back to the 15100-200 area and looking for a bounce for a possible lower high and more continuation to the downside.
Trade Well.....
Looking at the 4hr chart for MNQ we can see price has completed a perfect ABC measured move ending right high time frame resistance with overbought oscillators starting to show divergence on smaller time frames.
Being we are technically in a macro down trend this current rally should be thought of as a bull rally in a large downtrend. It is likely that price will trade in this range for awhile before making a decision to continue to the down side or give a clear reversal for new highs.
Personaly I am targeting the down side as price has already made its way back up to high time frame resistance, has completed a full ABC measure move retrace, oscillators are reaching over bought on medium time frames with divergence developing on the small time frames.
While we may not shoot straight down for new lower lows a retrace of our current pump is in order at a minimum.
Currently targeting the 15400-15420 area for a short entry postion back to the 15100-200 area and looking for a bounce for a possible lower high and more continuation to the downside.
Trade Well.....
