-- Daily Trend is still UP, but in pullback-down mode from overbought condition.
-- The 60-minute trend is DOWN, and approaching oversold condition.
-- The 5-inute trend is down as long as it is below 7900.
A large reversal-down day for NQ on Friday, with the close at the day low, in deep oversold condition on the 5-minute chart.
What usually happens following such a large trending down day, is an opening gap-down or morning trend down, then followed by a rally back up to balance price zone.
Balance price zone for NQ on Monday will be 7900. Supports are 7840, then 7800.
-- If NQ should trade above 7840 on Monday we could see NQ rally back up to the balance price zone, 7900, and implies sideways consolidation pattern
-- If NQ should trade below 7840 after the open on Monday we could NQ quickly dropping down to the next lower support, a very strong support, at 7800.
-- If 7800 support hold, we could see NQ rallying back up to 7840-7850, then 7900.
-- Should 7800 be clearly broken, we could see another large down day. Although it is not a highly likely event, anything is possible, so we must watch the levels.
