Thursday, April 29, 2021

NQ Guideline for Friday

NQ continued to trade inside a trading range on Thursday but it it now wider after Thursday trading action.

The new trading range is now between 14,040 resistance and 13,820 support (13,820-14,040). NQ may continue to trade inside the 13,820-14,040 trading range on Friday, with the 200-ma (13,930) on the 5-minute chart as line-in-the-sand

Wednesday, April 28, 2021

NQ Guideline For Thursday

NQ traded sideways in a very narrow range On Wednesday. It did not breakout of the trading range even after the FOMC announcement. Now that the trading range has narrowed, it should not take much for NQ to breakout of it and then trend out.

Key trading range for NQ going forward is at 13,880 support and 13,960 resistance (13,880-13,960)

A breakout to the upside above 13,960 with first resistance at 14,040, and a breakout to the downside below 13,880 with supports at 13,700-13,750

Tuesday, April 27, 2021

NQ Guideline For Wednesday

After a sharp morning decline NQ then traded sideways in a very narrow range most of the day ahead of Wednesday FOMC policy announcement to be released in the afternoon.

NQ is currently in the middle of a wide trading range between 13,860 support and 14,040 resistance, with the middle equilibrium, price level at 13,960, which will be Wednesday line-in-the-sand for NQ.

Bullish above 13,960 wih resistance at 14,040, and bearish below 13,960 with support at 13,860.

A sustained break out of the 13,860 - 14,040 trading range either trigger a fast trending move out of the range, or, if there is a false-breakout, would imply fast reversal.

Monday, April 26, 2021

NQ Guideline For Tuesday

NQ rally continued on Monday with the day high at double-top with April 16 swing high.

Now that NQ has retested the previous swing high from April 16 and then dropped, we should now see  NQ either breakout above the high and trigger a massive short-covering rally, or pullback down to support, 13,860-13,880..

Should support hold on a retest, we should see the uptrend resume. Should support failed we could see a sharp decline. Breaking above the April 16 high however implies NQ is going to rally fast without pulling back down.

Key line-in-the-sand for NQ on Tuesday will be at 13,980

Sunday, April 25, 2021

NQ Guideline For Monday

NQ managed to break out of its upper trading range resistance on Monday, thus triggered all day short-covering rally until the end of the day with just a small end of day profit-taking selling into the close.

On Monday, key line-in-the-sand will be at 13,940. NQ will be bullish above 13,940, with a higher high target above Friday's swing high, but a trading below 13,940 will be bearish, implies a decline to 13,860 key support. 

Should it clearly break below that 13,860 price level, we could see a likely sharp sell-off down to 13,780-13,800 price zone.

Thursday, April 22, 2021

NQ Guideline For Friday

NQ sold off very hard in the afternoon on Thursday due to the news regarding Biden tax plan. 


With Friday tendency to have a choppy sideways trading pattern, unless NQ can breakout of the trading range between 13,700 support and 13,880 resistance, NQ should trade sideways inside the 13,700-13880 range.

Wednesday, April 21, 2021

NQ Guideline For Thursday

On Thursday, after dropping down to0 lower low below Tuesday swing low NQ quickly revesed up, then trend up all day into the close, dropping down just a little bit on end of day from overbought conditions and on some profit-taking activities.

Line-in-the-sand for NQ on Thursday will be at 13,860-13,880. As long as  NQ can stays above 13,860 the rally should resume.. Trading back below 13,860 implies NQ is in a sideways pullback mode following a large up-day on Wednesday. Key support level for NQ is now at 13,820..

Tuesday, April 20, 2021

NQ Guideline For Wednesday

A large down day for NQ on Tuesday. Just like Monday pattern, after trending down in the morning NQ then tread sideways in the afternoon, setting up for a potential down day again on Wednesday. If so, we could see a very large down day because the next strong support is not until 13,475 and then 13,330.

On Wednesday, again, look for a large trending down move in the morning, then possible sideways pattern again in the afternoon. To do so, NQ needs to stay below 13,830 key resistance.

NQ would need to trade back above 13,880 again to turn bullish.

Monday, April 19, 2021

NQ Guideline For Tuesday

NQ trend down on Monday, a down day with small afternoon rally into the close, above line-in-the-sand for Tuesday, at 13,880.

If NQ should trade above 13,880 at the open, NQ should rally back up to about 14,000 now acting as key resistance. A break above 14,000 implies Monday drop was just a one-day pullback and that the rally has resume, target new higher high.

Breaking back below 13,880 is bearish. However, NQ would need to break below 13,780 to runover trailing stop-losses, and triggers liquidation drop.

Sunday, April 18, 2021

NQ Guideline For Monday

NQ traded sideways in a choppy narrow range pattern on Friday, the usual Friday pattern. Friday sideways pattern is a setup for a large up day, likely on Monday, as long as NQ remains above Friday swing high.

If NQ should open with a huge gap up and then spiking up into the 14,100-14,200  price zone, we could then see a choppy sideways action after reaching those price zone..

Should NQ trade below 14,020 line-in-the-sand on Monday we could see a move down to 13,960 key 200-ma support on the 5-minute chart. Trading below that would imply a retest of breakout price level, 13,880. 

Thursday, April 15, 2021

NQ Guideline For Friday

NQ opened with a gap-up above breakout price level on Thursday, forcing the shorts to cover. NQ trend up all day on Thursday with a close near the high of the day, and above Tuesday and Wednesday swing high.

With Friday tending to be choppy we could see NQ trending up but in a choppy action, unless of course the shorts are forced to cover.

Key line-in-the-sand for NQ on Friday will be at 13,990, bullish above, and bearish below. 

Wednesday, April 14, 2021

NQ Guideline For Thursday

After breaking out above February swing high on Tuesday NQ pullback down on Wednesday, a pullback down day for NQ on Wednesday, a potentially bearish pattern. 

However,  the decline was choppy, and in a nice A-B-C 1:1 wave pattern down  from Tuesday high to Wednesday swing low.

If, on Thursday NQ can rally back above 13,880, it could be just a one day pullback to relieve the overbought condition., and thus implies a resumption of the uptrend.

Failure to break back above 13,880 is an indication NQ is going lower bellow Wednesday swing low, with the next support at 13,600-13,650 area. 

Tuesday, April 13, 2021

NQ Guideline For Wednesday

On Tuesday NQ opened with a gap-up above February swing high, above breakout level, and then close above February swing high.

If NQ can stay above February swing high inspite of all the profit-taking activities, we should see NQ rocketing up as short sellers are forced to cover.

Key price level for NQ on Wednesday will be at 13,880. As long as NQ remains above 13,880 on any pullback-down move, we should see NQ rocketing up.

Key intraday line-in-the-sand for NQ on Wednesday will be at 13,950.

Monday, April 12, 2021

NQ Guideline For Tuesday

On Monday NQ traded in a very narrow range below double-top resistance, a bullish set-up before breaking out above double-top 13,765-13,880 resistance zone.

Consolidation can continue for several more days before breaking. As long as pullback remains shallow, the breakout will be very powerful as shorts cover their short and may reverse long.

Support going into Tuesday will be at 13,740 and resistance at 13,880. A clear break above 13,880 implies a potential powerful breakout. Trading below 13,740 implies a deeper pullback before attempting to break resistance.

Sunday, April 11, 2021

NQ Guideline For Monday

After dropping down to support on Friday NQ then spent the rest of the day rallying up towards very crucial resistance the double top resistance with February swing high.

As NQ approaches key double-top resistance at February swing high, 13,865-13,880, we could expect two possibilities.

1. NQ could decisively break above it, then triggers short-covering and rally non-stop for two to three days before pulling back to retest the break, or

2. NQ could pullback and consolidate before breaking above it. Then when it breaks, it would continue to  rally without pulling back.

On the intraday time-frame, key price level for NQ on Monday will be at 13,780. Stll in bullish mode above it, and in pullback mode below it, with first key support at 13,720.

Thursday, April 8, 2021

NQ Guideline For Friday

A big gap-up open for NQ on Thursday, a third gap-up open in this current up trend starting from Marcg 25th swing low, a powerful rally as shorts are forced to cover.

The rally should continue, but tomorrow is Fridat, and we could see the amrket trading sideways as usual.

Resistacnce is Frbruary high at around 13,875 and support is at Tuesday swing high.As long as there is NO black Swan event, 13,650 support should hold.

Wednesday, April 7, 2021

NQ Guideline For Thursday

Another sideways consolidation day for NQ on Wednesday. Two days of consolidation should provide a lot of energy for NQ to rocket up and break through resistance on Thursday. Key support for NQ on Thursday will be the 200-ma on the 5-minute chart, 13,600.

To do so, NQ should stay above 13,600 and then continue to push higher above Monday high and trigger short-covering and buying by traders waiting on the sideline. A trending-up day should last all day perhaps with a small end of day profit-taking selling.

In the event that NQ trades below its 200-ma on the 5-minute chart, and pushes lower, we could get a large liquidation decline, with first support at 13,300. Washout for a negative impact of Archegos Capital debacle.

Tuesday, April 6, 2021

NQ Guideline For Wednesday

On Tuesday NQ traded sideways in a consolidation pattern, consolidating the huge rally on Monday. NQ should resume its rally to the next resistance on Wednesday. To do so, NQ would need to break back above 13,610, and then push higher to trigger short-covering abd buying activities.

However, should NQ trade below 13,540 key support, we could see a sell-off. The problem with Archegos Capital could negatively affect the stock market. Thus, we must always be nimble and always be aware of potential black swan event.

Monday, April 5, 2021

NQ Guideline For Tuesday

NQ opened with a gap-up on above 13,000 key breakout price zone on Monday, and then as expected, pushed higher all day as stop-losses got run over. There was a small profit-taking pullback at the end of the day.

With such as large rally day on Monday,  there is a chance that we may get a pullback soon after the open on Tuesday. If so it should be shallow, with pullback target down to 13,540 or so before trending back up again.

With more shorts that may still need to cover their positions on Tuesday, we could have another large up day on Tuesday, with the next resistance at double-top at 13,875 area.

Should we get a much deeper pullback down move on Tuesday, we could see Tuesday as a consolation day, a setup for a large trending up day on Wednesday.

Sunday, April 4, 2021

NQ Guideline For Monday

NQ opened with a huge gap-up on Thursday and then traded sideways in a narrow trading range all day, and then close above triple-top 13,000 key breakout price level going forward.

If NQ could continue to stay above 13,000 on Monday and then continue to push higher, forcing short-sellers to cover their shorts we could see NQ rocketing higher, with the next resistance at double top at 13,850 price zone, which could may only take one to three days to reach.

If NQ should trade back below 13,000 we could see more consolidation and sideways actions.