Bearish H&S pattern. NQ to 9700?
Greetings All,
My bearish thesis for NQ futures this summer:
My bullish thesis for NQ futures this summer:
Bull Thesis Chart.
Happy Trading
My bearish thesis for NQ futures this summer:
- Bearish H&S pattern, with a neckline break (bearish). The market is has retraced to this neckline, which is a classic pullback test.
- Multiple (7) bearish divergences on the daily bar.
- Price is well below 200MA.
- 20MA is resistance for now.
- Price is rising, volume is falling, indicating bearish divergence.
- NQ may consolidate sideways between 11700 - 12600, before making a measured move to the downside.
- The 9700 target zone area is calculated using the distance between the HEAD and NECKLINE, coupled with the break in the NECKLINE.
My bullish thesis for NQ futures this summer:
- Multiple (4) bullish divergences on the weekly bars. This week's candle substantiates these divergences.
- RSI pivoting up from oversold condition in previous week.
- Price is at 50% retracement level with (3) rejections at this level forming
strong support (bullish). I also consider retracement to the 61.8% level as bullish price action.
Bull Thesis Chart.
Happy Trading
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