NQ - I still count this move up off the mid March lows as a corrective wave ( B ) up
On a daily chart we can see that the rally started off the mid March 2020 low has a clean A-B-C up structure.
It has passed 76.4% retracement of the wave ( A ) down and is approaching the next meaningful 85.4% retracement level (9,300).
In addition you may note that NQ has entered a Supply Zone created by a failed bullish pullback that took place on Feb 25, 2020.
Today in my Premium Chat I posted a lesson explaining phenomenon of Supply Zones:
“On Feb 24, NQ opened an evening session at 9,079.50 and kept going up until 2:15AM on Feb 25 when it topped at 9,212.75.
Then it reversed down and kept moving lower until it closed at 8,811.75 at 4:00 PM on Feb 25.
The most common explanation of phenomenon of Supply Zones is that some traders get stuck with longs created on those promising looking pullbacks and do not get stopped out when price reverses lower and starts making lower lows.
But regardless of rational explanation, those failed intraday reversal, failed attempts of bulls to turn the trend up in the course of down trends create strong resistance levels when price comes back up to that level.”
NQ - Daily chart updated at 8-48 PM on 5-07-2020
In my update posted at noon I noted:
“NQ needs at least that nominal new higher high to get its structure of subwave -C- of wave ( B ) up completed.”
But only during evening session bulls managed to make that push higher.
NQ - 240 min chart updated at 8-48 PM on 5-07-2020
At this moment we do not have any signs that this final push higher has topped.
Bulls can keep pushing it to 9,300 which corresponds to 85.4% retracement level mentioned above.
NQ - 9,000 tick bar chart updated at 8-48 PM on 5-07-2020
Previous Updates:
Important Disclaimer
CastAway Trader LLC, the publisher of this web-site and videos is not registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of the website www.castawaytrader.com and viewers of the videos are advised that all information presented on the website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives.
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. All trading setups and/or trades presented in the web site and/or trading chat room by CastAway Trader an/or by other members of the chat should be considered hypothetical for educational purposes only and should not be expected to be replicated in a live trading account.
An investor could potentially lose all or more than the initial investment. You should not speculate with capital that you cannot afford to lose. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.
You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor.
Any information posted on this web site is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information posted on the website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, CastAwayTrader LLC and its officers and employees undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that the owners, officers and employees of the web site www.castawaytrader.com may have long or short positions in securities that may be discussed on the website, Premium Trading Chat room and/or in the videos posted by CastAway Trader LLC.
Past results are not indicative of future profits.