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brudinholdings

NASDAQ Big Correction

Short
US Nas 100 (OANDA:NAS100USD)  
brudinholdings Updated   
OANDA:NAS100USD   US Nas 100
Support and Resistance Fibonacci nasdaq100
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supportandresistance fibonacci nasdaq100
NAS100USD
NASDAQ has been hovering at all time highs for most of August. With the the FED rumoured to start tapering asset purchases as early as this year and ending them altogether by mid-2022 on broad economic recovery, US indices are in for a long overdue (and healthy) correction. Here we have a simple chart including weekly ascending channel and weekly fib levels. Our big short level is the breakout of 14900 level as indicated on the chart. We are taking smaller entries every time the price moves towards 15000 and gets rejected.

If we do see a sell off, intraday targets are 14616 and 14460. Our desired TP level is 14079 which is the previous ATH level from 29th April. This also coincides with the weekly 50% fib level and likely weekly ascending trendline support in our channel. Our extended target is the weekly 618 fib at 13811. We may look to start buying at this level depending on the market fundamental and price action is it represent a great value zone.

snapshot
1H chart shows price in a descending channel. We are looking for a break of support or resistance to decide on new trades.

snapshot
15m chart shows a bear flag but we are waiting for a trendline break to add shorts.
Trade active:
We are holding shorts from the 14930 level
Comment:
Price rallied above our suggested short level in the low 14900s up to the recent resistance near all time highs. We do not see this as a sustainable move and is most likely setting up for a double top before another move down. We will be watching to see if price respects trendline resistance or heads to the ATH again.

snapshot
Comment:
Price opened on Sunday 22nd with a gap up and has been trending up in the overnight session. We are now looking for price to take out the ATH and re-test the broken trendline towards 15260. Failure here and we should test 15000 and 14900 again. Again we do not see this move as sustainable and volatility is expected ahead of the FED Jackson Hole press conference.

snapshot
Comment:
NAS loves to surprise to the upside! Yesterday we took out the previous ATH and rose into the 15300s. Price has not dropped below this level in the overnight session so we think the price is now targeting the weekly trendline near the low 15500s. We are trading the trend and watching closely for signs of a reversal.

snapshot
Trade closed: target reached:
NAS price came to the ascending weekly TL bottom. Happy with the profits, hope you are too!
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