CME_MINI:NQ1!   NASDAQ 100 E-mini Futures

As expected and mentioned yesterday, the failure to upside breakout the 16'450 area triggered a new wave of selling pressure, which as a result
pushed down the NQ1 towards a low so far of 15'765, testing on its way the top of the daily clouds support zone .

The NQ 1 is currently at a tricky level !!!

Indeed, the 15'800 area is also the former minor uptrend support line and a failure to hold above it would put the focus to lower levels having in mind
the lower band of the daily clouds support @ 15'400 ahead of the Head and Shoulders trigger level, currently @ 15'280.

RSI is below 50, @ 45.20 and the Lagging line has already cross under the Tenkan-Sen and is also very close to the Mid Bollinger Band .

4 HOURS (H4)

Looking at the H4, we can see the opposite move seen before yesterday when the price action triggered a cluster breakout to the upside; indeed, yesterday's
afternoon, this time the cluster breakout took place to the downside in its way, also breaking the H4 clouds support area , testing currently the ongoing uptrend
support line (in green)

RSI below 50, @ 38.80 and the Lagging line has already crossed under all the support lines and is also below the clouds.

1 HOUR (H1)

Small RSI bullish divergence which triggered a corrective small recovery so far; currently below TS , the clouds, MBB and KS .

Once again in order to neutralise the ongoing downside risk, the NQ1 should recover and hold above the 16'200-16'250 area !.

A failure to do it, would add further selling pressure, calling for lower levels


Looking on the weekly time frame, the med/long term trend is still OK but a weekly closing below 15'900 should be seen as the first warning signal of a trend reversal
in that time frame which would be confirmed by the breakout of the Mid Bollinger Band , currently @ 15'569 ahead of the ultime support level @ 15'363.

A breakout confirmed of 15'363, on a weekly basis would be very negative and would put the focus to the 14'400 area (23.6% Fib ret of the big 6'628-16'767 rally) and also
the weekly top of the clouds support area .

Ironman8848 & Jean-Pierre Burki


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