NASDAQ is reaching a strong upside extension resistance of 18700. If we get a breakout above this resistance we could see an immediate extension higher and a new long-term bull cycle. It will mean that the fifth long-term Elliott Wave is still in process. A rejection here and a break below 18400 will open a strong pullback and a test of the most important support 16800. Learn to Trade stocks profitably.
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 19100. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 19100. You can try a short trade here with a stop loss above 19100 or upon a break below 18200. This trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].
The Weekly NASDAQ chart reveals an addition to the previously mentioned, medium-term five waves and a fifth of the fifth wave long-term in the sharp rising wedge. As the long-term charts imply, at this point look only for the short trade entries or buying put options against the 19100 level as they have a higher probability of success. We will need to see a big break above 19100 to see an extension higher, so we have probably seen a long-term top for NASDAQ and finished five waves higher.
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As the famous trader says…
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short.”Victor Sperandeo
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 19100. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 19100. You can try a short trade here with a stop loss above 19100 or upon a break below 18200. This trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].