Wednesday, February 22, 2012

Trade Guideline for Thursday (NQ)

Wednesday was another consolidation day below 2600. It can continue to consolidate inside a narrow trading range 2575-2600 until it clearly breaks out of it.

  • A breakout to the upside could trigger another round of short-covering rally, taking it to the next resistance level, 2615-2625
  • A break-down below the lower trading range has the potential to run-over trailing stops of those holding long position, and can cause a fast liquidation decline down to 2545-2550