NQ1!, The Market Never Drops When Everyone Anticipating It
The market remains resilient and the bulls are active to defend the recent accomplishment 8200 level. Perhaps reaching and breaching the next 8300 milestone is in their minds.
Jokes aside the price moves up not because there is a strong desire to acquire the product. Put it simple: there is no strong supply met yet. This is e-trading. The volume is low and the momentum is diminishing.
On the chart is the current market structure. Watching the inflection point gives a clue where the price might go next. I found this is an objective view to trade the market and a chance to avoid your personal bias.
Regarding the last session. On Friday, a normal action was interrupted by 2 conflicting headlines. It made the environment challenging but also offered trading opportunities depending on your view and style.
What to expect:
The session ended at 8260 level which is a resistance to watch. A break and hold above it would be in line with the current bullish sentiment. A grinding up action to new highs would be the theme.
A return back to 8200 and hovering in that area would suggest a short term weakness and potential breakdown targeting the next level below. The larger timeframe bias won't change because of that but a spike in volatility is expected.
I mentioned it many times the price action is the only way to gauge which side is winning short term. For example. on Friday the sell side managed to break 8200 level for a very short period of time. Shorts started to pile up and the expectation was to see a sell off. But the price action suggested otherwise and going long at 8200 was a correct play. I tweeted that in real time.
Stay nimble. Trade the market not what you think about it.
11/10/2019
Jokes aside the price moves up not because there is a strong desire to acquire the product. Put it simple: there is no strong supply met yet. This is e-trading. The volume is low and the momentum is diminishing.
On the chart is the current market structure. Watching the inflection point gives a clue where the price might go next. I found this is an objective view to trade the market and a chance to avoid your personal bias.
Regarding the last session. On Friday, a normal action was interrupted by 2 conflicting headlines. It made the environment challenging but also offered trading opportunities depending on your view and style.
What to expect:
The session ended at 8260 level which is a resistance to watch. A break and hold above it would be in line with the current bullish sentiment. A grinding up action to new highs would be the theme.
A return back to 8200 and hovering in that area would suggest a short term weakness and potential breakdown targeting the next level below. The larger timeframe bias won't change because of that but a spike in volatility is expected.
I mentioned it many times the price action is the only way to gauge which side is winning short term. For example. on Friday the sell side managed to break 8200 level for a very short period of time. Shorts started to pile up and the expectation was to see a sell off. But the price action suggested otherwise and going long at 8200 was a correct play. I tweeted that in real time.
Stay nimble. Trade the market not what you think about it.
11/10/2019
