$NQ: Triangle Scenario May Be in Play

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$NQ #NQ-mini #triangle consolidation

So far bulls have not broken over the red trend line and we have not got confirmation that the wave -iii- up has started:

NQ-mini 240 min chart

Because NQ has not broken out yet we have to consider that triangle scenario:

NQ-mini 240 min chart

Under that scenario, NQ has not finished a triangle shaped consolidation in a corrective wave (iv) down. To complete that boring (correction through time) corrective structure bears need to push NQ down one more time in the final subwave (e) down. Note, that wave count argues we are dealing with a contracting triangle. That means every new move gets shorter. Therefore, that wave count argues tha the next move down in a subwave (e) down has to find a bottom not lower than 25,250.

Note that NQ is testing a critical support level (a broken Monthly Resistance) 25,685. Bulls need to stop that drop to keep alive the Very Bullish straightforward scenario shown above. Break under 25,6985 would confirm that NQ is following the triangle scenario.

Break under 25,685 would open the door for a drop down to 25,415.

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