As expected the short-squeeze rally in NQ continued on Wednesday. However, the Fed induced rally seems to be losing steam, with NQ daily candle spotting almost a gravestone doji candle, a bearish signal which could lead to a decline to retest the breakout level, 9735.
As such, we look to the intraday support to give us a hint.as to whether or not the pullback to retest the breakout level is forthcoming.
Key intraday inflection price level for NQ on Thursday is at 10080
-- NQ is still bullish above 10080, with the next upside target of a higher high above Wednesday high.
-- Bearish below 100080, with key support at the 200-ma on the 5-minute chart.
Should NQ clearly breaks below the 200-ma on the 5-minute chart we could see a quick drop down towards 9735 breakout level. There will be a lot of buyers at 9735-9800 price zone. A strong support price zone that should not break, but anything is possible.
