Nasdaq 100 Index NAS100 Nasdaq throws a lot of similar shapes to Bitcoin whose consolidation periods tend to last a few hours and no longer than 2 days maximum, but here the continuation patterns last a minimum of 2 days (last one) and more usually 8 days and up to a month. But the shapes are almost identical. Fast, sharp declines over 2 days, followed by an immediate rally into new high ground are a sign of a very strong market, usually a confirmation signal of further strength ahead. In addition, the pattern carved out on the chart over the past week is a clear flag formation with a minimum upside measurement target at 6472, and could easily extend further to 6515. Look to get long for the early part of this week at least: Initial support begins at the recent high at 6282-0. Whilst it can hold up here this index is extremely positive...so long as this level holds tomorrow Nasdaq is expected to have a stellar week ahead. It's a buy with stops under 6275 for a 20 point loss if wrong. Or wait for the open on Monday to see that 6275 holds up first...but it may have gapped up by then. If so follow it, though with stops still below 6275. And if this trade goes wrong and 6275 fails to hold at any point between now and the open it's likely to drift further and then perhaps come off on the open to 6246 (at lowest a spike to the upper parallel just below here) before rallying strongly again. That looks to be worst case scenario, which looks less likely than a gap up as things stand right now. One other way to enter the trade is to put a buy order in at 6283 and hope it gets struck overnight with a tight stop 11-15 points under for small loss if wrong but 200 to 300 - points upside if right. If it gets stopped out look to re- enter again around the open on any further weakness in the first 5 to 30 minutes, ideally towards 6246 and a tad lower - but this is only likely if 6282-6275 gives way. Don't think it will for what it's worth...let's see
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