NAS100 Next Move Prediction 28 January 2020
Updated
Good day fellow traders,
After predicting the major short from the 9270 region, it fell even lower than predicted, the current market is driven by greed since the 13th December stock rally, we saw a slight decline due to the killing of Iranian general, but a instant pull back by buyers trying to take advantage of a potential long opportunity, while all is well, this stock was overbought, we exited the daily parallell channel and created a new H4 ascending zone, everytime we peaked out this zone we have seen a decline and drop. I believe this was institutional traders like the banks, testing the waters waiting for optimal opportunity for the perfect short to clear all the buyers in the market which are holding still. I expect a decent pull back as we have clear rejection off the H4 and H1 candles, indicating fresh demand zones and possible market correction about to take place.
Fundamental Analysis
Fundamentals did play a role for sure, but here are a few examples of recent events and what happened to the stock market
1) Any positive or negative news on the China / US trade deal impacted NAS100 almost instatly, right until the actual signing of the contract which saw a negative decline.
2) Any negative news on Iran war with America impacted NAS100, the killing of Iran General saw a instant decline in stocks and a immediate rally back up, second drop was from the missiles dropped in the greenzone US embassy, after that no one cared.
3) Any negative news on Coronavirus has seen a decline on NAS100, bearing in mind this is a 1700 pip drop, people die everyday, people will only care until a certain point, then it is business as usual.
4) Earnings this week seem to be positive as well on most.
Technical Analysis:
I forsee a head and shoulders, Left shoulder and Head has been formed, a possible further push down from current sellers into our demand zone and rejection off the strong support. we should consolidate alot during monday, but i do expect pull back into the zones which have been highlighted.
White dotted lines highlighting phases of indecision in the market.
I am currently in long positions ranging from 9120 - 9200.
After predicting the major short from the 9270 region, it fell even lower than predicted, the current market is driven by greed since the 13th December stock rally, we saw a slight decline due to the killing of Iranian general, but a instant pull back by buyers trying to take advantage of a potential long opportunity, while all is well, this stock was overbought, we exited the daily parallell channel and created a new H4 ascending zone, everytime we peaked out this zone we have seen a decline and drop. I believe this was institutional traders like the banks, testing the waters waiting for optimal opportunity for the perfect short to clear all the buyers in the market which are holding still. I expect a decent pull back as we have clear rejection off the H4 and H1 candles, indicating fresh demand zones and possible market correction about to take place.
Fundamental Analysis
Fundamentals did play a role for sure, but here are a few examples of recent events and what happened to the stock market
1) Any positive or negative news on the China / US trade deal impacted NAS100 almost instatly, right until the actual signing of the contract which saw a negative decline.
2) Any negative news on Iran war with America impacted NAS100, the killing of Iran General saw a instant decline in stocks and a immediate rally back up, second drop was from the missiles dropped in the greenzone US embassy, after that no one cared.
3) Any negative news on Coronavirus has seen a decline on NAS100, bearing in mind this is a 1700 pip drop, people die everyday, people will only care until a certain point, then it is business as usual.
4) Earnings this week seem to be positive as well on most.
Technical Analysis:
I forsee a head and shoulders, Left shoulder and Head has been formed, a possible further push down from current sellers into our demand zone and rejection off the strong support. we should consolidate alot during monday, but i do expect pull back into the zones which have been highlighted.
White dotted lines highlighting phases of indecision in the market.
I am currently in long positions ranging from 9120 - 9200.
Trade closed: stop reached
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