Price almost tagged the 200 on Friday. Powerful bounce on the same day.
Swing on Monday ( breaking above the reversal's candle high)
Follow through with a on Tuesday.
The next sign that we'll be testing 7030 again is a break above the 10 and 50 .
left oversold territory. also turning up to cross over.
When we break above the false swing candle's high (6700$) the rally will accelerate. This also means a break above the
blue dotted .
The 100 and 50 just crossed over today. We need both of these moving averages to get above the 200 on the hourly chart and the 200 to turn up again.
The hourly chart shows the importance of 6700 again. If we break that level many traders will have the confirmation that we are testing 7000 again. For me it means a new high. As soon as 7000 will be tested price will break above it. When we break 7000 the NAS100USD will be testing 8000 in a few weeks.
Following the plan
The magic 6700 is just a stone's throw from here...
Most of the traders still not in this trade.
This will start the recognition phase for shorts : this is not going to drop.
I'm waiting for the rally to accelerate at this point.
One important thing : I'm going to hold this position for weeks most probably for 3-4 months. I suggest don't try to jump in and out because the daily advances can be so big that once you sell your position you will not be able to get back again.
And of course the other rule : no shorts here.
Every oversold point in the RSI 6 is followed by a long period in the overbought territory.
At this point there no question the bottom is in.
We will be testing the all time highs soon.
Flag is breaking to the upside:
Pennant is forming . It will break in the next 2-3 days.
THat will run NASDAQ to new highs.
Hold on : longs will be rewarded.
DAX was under pressure because of the strong Euro. When the Euro drops DAX will pop too.
Pop not poop...