Monday, June 6, 2011

Trade Guideline for Tuesday (NQ)

Monday was a trending-down day with a close near the low of the day. For Tuesday there are three potential patterns.

  1. Narrow-range consolidation day with Monday's low as support and 2285 as resistance zone.
  2. Another wide-range liquidation down day, likely on a sustained decline below Monday's swing low, running over stop-losses, targeting a move down to 2265 and and then 2250 as potential double-bottom support with April 18 swing low. A break below 2250 could potentially cause massive liquidation.
  3. A bullish short-covering up-day on a break above 2285 resistance zone targeting 2300, 2310 -  2315.