$NQ: Keeps Going Down as Expected

  • CastAwayTrader
  • July 24, 2024
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$NQ #NQ-mini #trading setup #Elliott wave

NQ has been moving down as we correctly predicted in the morning update. The next big support can be identified at 8,924, the upper edge of the next Green box:

NQ-mini Daily chart

Let’s zoom-into a micro 15 min chart:

NQ-mini 15 min chart

The next important fib is located at 76.4% ext of the subwave (a) down. That is 19,070.

The 76.4% ext is a risk level where the second leg may prematurely terminate. This is where bulls will have the first real opportunity to stop decline. However, the fact is, in majority of cases, the 76.4% ext provides only a temporary support and produces only a weak bounce. If we get some flat bounce off that 19,070 level followed by a break under that level that would be a short to ride extension of the decline down to the next fib which will be 100% ext = 18,755.

This current level 19,285 actually is also an important one:

NQ-mini 15 min chart

Note how that level first stopped the rally back in May 2024 and then turned into a support in early June.

This is how that level works against this decline:

NQ-mini 15 min chart May – june 2024

So we can get a consolidation in a micro wave iv up here. But would still expect extension down to at least 76.4% ext = 19,069. Once NQ gets to that green box bulls should start attempt of a new rally.

The minimum target / strong resistance for that bounce would be 20,088, the high made by corrective bounce in a subwave (b) up made yesterday

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