In this article, we will share top-down trading technical analysis for the NASDAQ.
On the monthly NASDAQ chart, we can see that so far we have another rejection off the 7228 level which is the last resistance before the 100% Fibonacci extension 7772 level. This was also the March 2018 high. Also we have a visible RSI (13) negative divergence. This is indicating that we could have a top formation.
The weekly NASDAQ chart is revealing the rising wedge formation and it is confirming the 7228 level as the downside support. Negative RSI (13) is visible here also. With the weekly price action Doji formation we could see a bearish range move into the 6600 level.
By using our top-down trading technical analysis we have identified the key levels which will be your triggers for trading entries in this heavy consolidation price action. You an take short trade entry here with the stop loss just above the 7220 level targeting the 6600 level. This short trade could bring you on 1 standard contract 8140$ of profit. I you are trading mini lots it is 814$ with the 200$ risk.
Happy trading! (click on the chart to enlarge it)
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