Good morning, Traders!
The Nasdaq futures market continues to perform well (NQ). Both the short- and long-term trends are positive. However, we should prepare for a pullback in the near future.
Such a pullback/sell-off can be brief, with a swift return to a bullish run. However, there’s the potential that a sell-off may evolve into a negative trend. How can you pick up on all of these potential market directions? To understand more, check out this training video on market patterns that I created!
Now let’s take a look at the NQ’s timeframe analysis to see what’s happening:Daily Timeframe Analysis
When we look at the daily timeframe chart for the NG, we can see that the general trend is up, although the price needs to move higher if it’s to stay about from support within the channel.DAILY TIMEFRAME
The direction within the daily timeframe is up
The current direction for the one-hour timeframe is up
THE BOTTOM LINE
The U-turn direction remains up
The daily NG is still up, but needs to progress a bit higher or it risks slipping into a sell-off toward support (bottom grey line).
If the rally is to be sustained, additional upward movement is required. If no more gain is realized, the market may enter a reversal and fall back to support.
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One-Hour Timeframe Analysis
In the one-hour timeframe analysis, the NQ has found support. Remember that support is the point at which buyers re-enter the market, causing the price to rise again.
We want to use counter trendlines to confirm that the price has started to drive bullish and moved into the buy zone when we notice a shift from a bearish decline to a strong rally.
The NQ is holding near support (upper grey line). If the price drops below support, we could see a significant sell-off. If the price stays above support, we could see the short-term direction continue to move up.
The market should continue to rise within the one-hour timeframe if support holds. However, if the price falls below support, a big sell-off might develop until the price bottoms out.The Bottom Line
The NQ is trending upwards in both the short and long term. When looking at the one-hour timeframe, though, the market remains near to support.
If the price breaks through support, it might result in a sell-off and a short-term negative trend. We’ll wait for the price to bottom out and rebound on a new support level if that happens.
Both the long-term and short-term directions for the NQ are up. We’ll want to keep an eye on the short-term, though, as the price could drop below support and trigger a bearish drop
Right now, we’ll keep watching the price movement and look for opportunities to enter the market at low prices within the buy zone!
Want to learn more about trading futures like the NQ? Check out my free trading materials to get started. You don’t want to miss out!
Keep On Trading,
Mindset Advantage: Own It
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