Monday, March 21, 2011

Trade Guideline for Tuesday (NQ)

As indicated in my trade guideline for Monday, the 60-minute chart pullback mode was triggered with a large gap-up open above key resistance level of 2250 on Monday. 
  • However, after an initial burst of short-covering rally in the morning, NQ then spent the rest of Monday's afternoon  consolidating the morning uptrend.
For Tuesday, 2245-2250 will be my key Line-in-the-Sand Zone for establishing bias. 
  • Staying above that zone implies the next upleg should rocket up to 2290, and if that breaks, the next higher target is 2300-2305.
  • Breaking below the 2245-2250 zone implies a potential decline down to 2335, then if that breaks, a further decline down to 2215-2220 area.
Note: Always watch out for Whipsaw market conditions