It's hard to show the bigger & smaller picture here without having a very ugly looking chart, but the NAS100 has been bullish lately & is now forming a sideways channel at the end of it's last extension higher. This formation is called a high & tight flag formation & it's one of my favorite setups for breakout/Continuation trading.
Something that we also know is that Advanced Pattern formations often form during periods of consolidation in the market & what we currently have forming is a potential bullish bat pattern with a completion point towards the lower end of the channels range.
Entering at the bottom of the range is risky because it doesn't provide confirmation of a bullish breakout, but what it does provide is an opportunity to create an excellent risk to reward situation. Because this is an index (which is typically more directional) I look at a conservative target being the retest of the channels highs & using an active trade management method to trail stops while you look to be involved in the continued move higher.
I hope you guys have a great weekend & as always if you have any questions, comments or just want to share your analysis, please leave them below.