Traders continue to follow technology stocks as a prime indicator of the potential direction changes in the general stock market.
And one of the prime indexes for leading tech stocks is found in the Nasdaq 100 Index and its futures contract (NQ).
We continue to monitor and analyze the markets and see the potential for the tech sector… as well as the potential for the tech-heavy Nasdaq 100 Index.
So today, let’s take a look at capitalizing on what we see as a potential trade developing in NQ and review what’s happening inside the chart formation…
The Nasdaq 100 (NQ) Trade Setup
Here’s how the chart shows the potential buy trade in NQ is setting up…
And here’s how the market analysis of the chart shapes up…
The Nasdaq 100 Index (NQ) is in a down channel. The market hit the bottom of the channel and is now pushing bullish towards the top of the channel price point 13,389.75, about 5,364 ticks above the market.
The monthly time frame is holding at support. It will be a good idea to wait for the monthly time frame to close either above or below support before making a decision on direction.
If a decision had to be made today…. The daily time frame shows it would be a good idea to turn to the one hour time frame and to look for low prices in the buy zone towards the top of the channel price point 13,389.75.
The Bottom Line
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