With NQ daily chart still firmly in an uptrend mode, with the next resistance not until 7100, NQ continued to rally on Tuesday with the day high reaching 7035, still 65 points away, NQ then traded sideways most of the day.
As NQ approaches the 7100 key resistance level, many traders currently holding long positions may starts to take profit ahead of the 7100 price level. However, as long as profit-taking selling activities does not overwhelm buyers NQ should continue to rally.
Key support for NQ going into Wednesday trading session is 6980.
-- As long as NQ remains above 6980 it should continue to rally towards the 7100 price level without large pullback down..
-- Trading below 6980 is an indication NQ may have to pullback down to lower support before rallying back up towards the 7100 level. If so, the next key support is at 6950. Should NQ clearly break below 6950 it could continue to drop down to lower support at 6835, the prior trading range resistance now support.
