Daily NASDAQ Trading Setup

by: Colibri Trader

Last time’s trading analysis has turned out pretty much as expected. All-in-all range trading and not a great long/short opportunity. It seems like DAX will really spend some more time in hesitance. Now, it looks more bullish than bearish, but it is still not giving a clear indication of trend direction.

I am curious to see if DAX manages to break through the 12250 barrier and hold there for a while. It is very likely that it will fail those highs and go lower.

Since I am not convinced in any of those two scenarios, I will leave DAX on the sidelines for the time being.

Daily NASDAQ Trading Setup

It has been a while since I last spotted a NASDAQ trading setup. It is definitely not my “cup-of-tea”, but I am sure there are plenty of you out there trading it.

It seems like NASDAQ is failing to make a new high. So, if not a new high, maybe it is ready for a small/medium dip.

Price action is confirming this point of view. There is a huge bearish engulfing candle on the daily chart. I am curious to follow the intraday price action and possibly a bullish rejection around 5930 could be an indication of a weakness.

If you have your own reasons to short NASDAQ, this might be just one more reason. I will be following closely tomorrow and decide if the R:R is worthwhile taking this trade.

A hypothetical stop-loss could be above 6000. A possible price target might be first 5800 and then 5600 (depending on PA).

Happy Trading,
Colibri Trader

p.s.

If you have not downloaded the free risk spreadsheet, check out my recent article on Money Management

You might also check how I analyse Symmetrical and Ascending Triangles

(Visited 534 time, 1 visit today)