NQ1! - Monthly Closed, What Next?
In my previous NDX thread I suggested that the 6M candle would create incredible bearish sentiment and would be a great time to trap shorts and lock out sellers in a reversal and that is exactly what happened. Notice that there is very little lower wick for July candle. It shows that the turn of 1/2 year was a significant turning point.
On the monthly chart July has printed a bullish engulfing candle and so now the sentiment is reversed. The bottom is in everyone thinks and come rushing in.
The inverse trapping doesn't have to happen again, but it is starting to look like it might do just that.
Now on the daily chart at the top NQ1! has just tagged the 100MA which found the retracement top in March.
The last candle of the month printed a hanging man and there is a large gap between the last two candles which could be a topping exhaustion gap.
There are two circled resistances in this area and so it is a key price point.
I have used a pitchfork also to show how the trend has pushed upward and now passed the upper median line. This could be just strength in trend increasing however there has been a lot of choppy movement since the low and it could be topping out to collapse back down and then perhaps a more impulsive structure will form.
The dotted white line is how a trend line could be drawn and it is also the lower median line. I think there is a good chance it will tag that line before the uptrend really takes off.
It could push higher and i'm not saying it won't have a flurry upward and that would provide the path for a Shakeout Reversal Pattern to print through resistance and 100MA.
Not advice.
On the monthly chart July has printed a bullish engulfing candle and so now the sentiment is reversed. The bottom is in everyone thinks and come rushing in.
The inverse trapping doesn't have to happen again, but it is starting to look like it might do just that.
Now on the daily chart at the top NQ1! has just tagged the 100MA which found the retracement top in March.
The last candle of the month printed a hanging man and there is a large gap between the last two candles which could be a topping exhaustion gap.
There are two circled resistances in this area and so it is a key price point.
I have used a pitchfork also to show how the trend has pushed upward and now passed the upper median line. This could be just strength in trend increasing however there has been a lot of choppy movement since the low and it could be topping out to collapse back down and then perhaps a more impulsive structure will form.
The dotted white line is how a trend line could be drawn and it is also the lower median line. I think there is a good chance it will tag that line before the uptrend really takes off.
It could push higher and i'm not saying it won't have a flurry upward and that would provide the path for a Shakeout Reversal Pattern to print through resistance and 100MA.
Not advice.
Note
Hanging man followed by a tasty spinning top doji plumb on resistance. Today's candle bearish so far. Will it be an evening star?
Note
Well it did flurry and it may not be done just yet but now hitting the 1.618 and I'm guessing it will reverse somewhere between that and the 1.786. If not it'll be the 2.272 but that seems quite a bit less likely.Note
And now hitting the upper warning line.Note
So in the end it did top out at 1.786 and has had big slump back down below the upper median line. The pitchfork captured this move well. We'll see how this week goes.
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But offering 20% discount to join my group 👍🏻
Lots of content every day with regular videos, 1:1 and chatroom 🚀.
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