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chiefwils0n

Bearish H&S pattern. NQ to 9700?

Short
NASDAQ 100 E-mini Futures (CME_MINI:NQ1!)  
chiefwils0n  
CME_MINI:NQ1!   NASDAQ 100 E-mini Futures
Trend Analysis Chart Patterns
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trendanalysis chartpattern
Greetings All,

My bearish thesis for NQ futures this summer:

  • Bearish H&S pattern, with a neckline break (bearish). The market is has retraced to this neckline, which is a classic pullback test.
  • Multiple (7) bearish divergences on the daily bar.
  • Price is well below 200MA.
  • 20MA is resistance for now.
  • Price is rising, volume is falling, indicating bearish divergence.
  • NQ may consolidate sideways between 11700 - 12600, before making a measured move to the downside.
  • The 9700 target zone area is calculated using the distance between the HEAD and NECKLINE, coupled with the break in the NECKLINE.

My bullish thesis for NQ futures this summer:

  • Multiple (4) bullish divergences on the weekly bars. This week's candle substantiates these divergences.
  • RSI pivoting up from oversold condition in previous week.
  • Price is at 50% retracement level with (3) rejections at this level forming
    strong support (bullish). I also consider retracement to the 61.8% level as bullish price action.

Bull Thesis Chart.
snapshot

Happy Trading
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