Navigating the Nasdaq's Turbulence: A Peek into the Week AheadAs we head into the trading week, let’s zero in on some critical levels on the CME_MINI:NQ1! Nasdaq that are making the rounds in savvy financial circles. With a bit of a bearish vibe from the get-go, understanding these might just set the stage for some strategic plays.
Top Tier: 19,300 to 19,400
Keep your eyes peeled on this upper bracket. It's where the ceiling might just come crashing down with selling pressure. A lot hinges on how prices react here—will they retreat or break through unexpectedly?
Middle Ground: Around 19,200
Here lies the Fair Value Gap, a zone that often acts as a decision-making hub for the bulls and bears alike. If prices struggle to push past this, it might just reinforce the gloomy outlook for the week.
Entry Alert: Near 19,100
Thinking of going short? This could be your spot. The Optimal Trade Entry point around 19,100 is where the action could heat up, signaling a strong entry if bearish momentum continues.
Watch Your Step: Around 18,730
This level has history. It's served as a balance point before and could either prop up prices for a rebound or give way under bearish pressure, leading to further declines.
Base Camp: 18,300 to 18,550
Down here, if the floor gives way, expect the bears to rush in even stronger. It's a critical zone to gauge just how far the current sentiment could drag the market down.
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Abbreviations
D FVG - Daily Fair Value Gap
D OTE - Daily Optimal Trade Entry
Eq 4h - Equilibrium 4 hours
OTE 4h - Optimal Trade Entry 4 hours
NDOG - New Day/Week Opening Gap
N100
N1DAILY
We still in a bull trend but in the corrective phase of the bull trend. 16900 area is where we want to see action. The last support as all others are broken right through. We formed an expanding wedge going up and was broken, the retest here will let us know it's fate.
4H
We formed a "flatish" flag, which is the correction of the current trend (bearish). Broke it and we are correcting once again, so we should anticipate the completion of the correction to come with an impulse. My idea has it collapsing further to 16965, around here we'll gain momentum.
1H
A mentor of mine says trade the market ugly. Ugly is definitely is all I see. Waiting for the impulse candle to kick in and drive the supply.
Searching for safe haven - SHORT on breakoutEURJPY might be on the descent and it has just reacted to long-term support. However, it also broke 200 EMA (Black Line) and is trading below rejecting it once. Suffice to say, that we are from my point of view, in the decision area right now.
Although high commodity prices, oil, in particular, are as bad for Japan as they are for Europe, Yen is still acting as a safe haven currency. This is likely behind a somewhat sharp move towards the support (orange).
If I am right and the markets are concerned about the energy crisis in the making and extended inflation in the commodities, Yen will be among the "safe haven" currencies investors may choose to pick.
Why trade it again in EUR? I like the support. If obvious levels like these get broken, moves are more likely to continue. I would consider trading it against AUD or CAD, but their charts do not paint as clear a level like this.
My safe haven theory is further supported by growing prices in Gold, but it is contradicted by growth in Euronext 100 (N100) which is not exactly a safe asset if Europe gets in trouble. I would like to see a reversal candle in Euronext too before or along with the breakout in EURJPY.
What do you think? Am I approaching relational analysis right?
NASDAQ updates as Late FEDCUT NEWS Resumes Panics!?Congrats on our previous highs(Short buy) as we touched 9000 on the dot. So therefore we just got in a late Fedcuts: Coronavirus live updates: US cases rise to 108, Fed cuts rates on outbreak risk. Fed cuts rates by half a percentage point to combat coronavirus slowdown. So i see a push downwards to supports level @8200 parameters.. Like and share your ideas on this particular pair too. Also always apply proper risk managements thanks!