On the daily chart, NQ pattern is very bullish, an inverse head and should pattern projecting a rally to at least double-top at 13,850 area. However, in order to rally up to that target, NQ would need to clearly breaks above 13,300 triple-top resistance.
On Monday, after pulling back down from overbought condition NQ resumed the rally, however, it continued to bump up against strong resistance at 13,000, and failed each time.
Strong resistance zone range from 13,000 to 13,075. then 13,175.
A break above 13,000 could trigger short-covering rally that has the potential to rocket through 13,175 double-top resistance . If so the next very strong resistance is 13,300. Breaking above 13,300 implies a quick rally towards 13,850 swing high.
If NQ should drop back down below key support at 12,700, the stage is set for massive liquidation selling to tank NQ down to 12,200 or lower.
