As usual, following a large rally on Tuesday NQ traded sideways in a consolidation apttern on Wednesday, setting up a potential breakout day.
Key price level for NQ on Thursday will be 7200 support and 7350 resistance.
-- A breakout to the upside above 7350 is likely to run over stop-losses for the sellers, triggering short-covering rally. If so, it should rocket up to resistances. Strong resistance resides around 7445 to 7459, prior swing low and 20-dma daily and 50-dma daily.
-- A breakout below 7200 is going to run over trailing stop-losses for the buyers, could tank NQ down to 200-dma daily. Should the 200-dma breaks, it would result in a crash.
