Nasdaq reversed perfectly at Gann level 16372, which is also the outer boundary of the pitchfork (dashed line). The questions is if other Nasdaq components can propel the index to one more ATH (wave 5), or if the top is in.
Narrative:
Central banks seem in no hurry for raising interest rates, which could continue to propel Nasdaq to new ATHs. CPI is due today and might be an indicator for direction. We can see that the slightest Earnings disappointments lead to dramatic price crashes. PTON is an example. This should not happen in a strong market and is a red flag in general.
Elliott:
It is difficult to determine an EW count in the current trend that just cruises along. We can count wave (v), in blue, as completed. Alternatively we are in wave 4 of (v). This becomes likely if price reverses in the .236-.382 Fib area (blue box).
Gann:
Support: 15376
Resistance: 16372
How I trade it:
The .236-.382 Fib area (blue box) is a zone with better risk/reward ratio. The idea is to test a long here, in case wave (v) is still to come. The zone however depends on the correctness of the count, which is difficult. TSLA needs to stabilise for this scenario to play out.
_______
In my analyses I combine Elliott waves and Gann theory to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to sell options when markets range and volatility contracts.
BTO = buy to open
STC = sell to close
STO = sell to open
BTC = buy to close
TD = Theta Decay (for example a strangle or iron condor)
The views and ideas expressed in this analysis are that of the maker, they are provided as educational information and do not constitute financial or trading advice.
Narrative:
Central banks seem in no hurry for raising interest rates, which could continue to propel Nasdaq to new ATHs. CPI is due today and might be an indicator for direction. We can see that the slightest Earnings disappointments lead to dramatic price crashes. PTON is an example. This should not happen in a strong market and is a red flag in general.
Elliott:
It is difficult to determine an EW count in the current trend that just cruises along. We can count wave (v), in blue, as completed. Alternatively we are in wave 4 of (v). This becomes likely if price reverses in the .236-.382 Fib area (blue box).
Gann:
Support: 15376
Resistance: 16372
How I trade it:
The .236-.382 Fib area (blue box) is a zone with better risk/reward ratio. The idea is to test a long here, in case wave (v) is still to come. The zone however depends on the correctness of the count, which is difficult. TSLA needs to stabilise for this scenario to play out.
_______
In my analyses I combine Elliott waves and Gann theory to identify turning points in the markets & derive high-probability trading ideas. The strategy is to build leveraged exposure when markets are likely to expand, and to sell options when markets range and volatility contracts.
BTO = buy to open
STC = sell to close
STO = sell to open
BTC = buy to close
TD = Theta Decay (for example a strangle or iron condor)
The views and ideas expressed in this analysis are that of the maker, they are provided as educational information and do not constitute financial or trading advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.