After opening with a gap-up and run up to resistance on Friday NQ then continue its decline closing at the day low, a down day for NQ on Friday. NQ continues to be in sell mode on the daily chart..
Key price level for NQ for Monday will be 7100 support and 7160 resistance, (7100-7180 trading range). A sustained break out of the 7100-7160 trading range is likely to trigger fast trending move in the direction of the break.
-- A break above 7160 could trigger some short-covering rally, with higher resistance at 7200, then 7240. With trailing stop-losses for the shorts now above 7240, a clear break could rocket NQ higher, with strong resistance at 7350.
-- Should NQ clearly breaks below 7100 it could cause a waterfall decline as trailing stop-losses for the longs now congregating below 7100 get run-over.
Potential trading range breakout (7100-7160)
