mid week Analyses: Correction Before the Highs
Welcome Traders,
Last week NAS100 gave a bullish rally on Thursday Sep 19 following the announcement of the Fed Reserve interest rate cuts. Since then, price has been consolidating. Monday and Tuesday are notoriously known for low volume and consolidation therefore I have not taken any trades.
My directional bias for the week is bearish to signal HL on the bigger timeframes for the following reasons:
1. Since price signalled a Daily HL at 18,315.4 on August 4th, price has been very bullish only signalling a 4H HL once on Monday Sep 16th which respected a 23.6% fib level.
2. Price is currently within a strong area of resistance highlighted by the red zone where price previously retraced.
3. Price is currently at the 78.6% fib level of retracement on the weekly chart.
Since my bias is bearish, I am looking for to see wether price action will respect the retracement zone that I have highlighted in blue. It is common for price to have a bullish liquidity grab to sweep out the current highs at NYSE open taking out any early sellers.
If NYSE opens on Tuesday or Wednesday with a push to the upside, this push can serve as a key entry point for a sell position to take out the lows and restest a previous support.
I anticipate the liquidity sweep to the upside to retest a previous resistance at 20,059.6 before entering sell position with a TP of 19,434.8 at the 78.6% key fib correctional level.
If price does not sell, then price will breakout of the weekly consolidation range maintaining its bullish strength by signalling a series of HLs on the 1H - 2H TFs to continue to ATHs.
