On the weekly chart, NQ hit into a long term Parallel Channel for the 2nd time and reversed, forming a mini double top. The sell off in the tech stocks have been gaining momentum this week and may not find good support until the 12200-12300 region. And whether this support zone holds remains to be seen.
Renewed "pessimism" has been surfacing due to global chip shotages and inflation fears. The market looks stretched and I guess it's time for big boys to "tame" valuations. For those looking to buy the dips, it's probably best to proceed very conservatively until signs are clearer that the selling is exhausted, or some kind of market capitulation.
Stay safe!
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Feel free to give me your thoughts ! :)
Renewed "pessimism" has been surfacing due to global chip shotages and inflation fears. The market looks stretched and I guess it's time for big boys to "tame" valuations. For those looking to buy the dips, it's probably best to proceed very conservatively until signs are clearer that the selling is exhausted, or some kind of market capitulation.
Stay safe!
Disclaimer: This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Feel free to give me your thoughts ! :)
Comment:
We had some rally in the past week but it has turned out to be a sucker rally instead. We could have a minor support around 12900. But if that doesn't hold ,then it could jolly well head towards the horizontal support shown in my chart (12200-12300). I will adhere to my stop losses for any long positions.