Nasdaq Poised to Rally
Updated
The Nasdaq has a good setup for a rally. The overall price action has been supportive and with the Minor Pivot Stack in place this bodes well for a push higher.
The Monthly Pivot Range is close underneath which almost formed a Super Pivot Stack.
With the Daily Pivot Moving Averages turning up, this could be a significant move. Go long on strength through 6655.00 and place a stop loss at 6376.00 and profit target at 7347.00
The Monthly Pivot Range is close underneath which almost formed a Super Pivot Stack.
With the Daily Pivot Moving Averages turning up, this could be a significant move. Go long on strength through 6655.00 and place a stop loss at 6376.00 and profit target at 7347.00
Note
With the price now well above my entry I will now trail the stop losses to just underneath the 6 Day Rolling Pivot Range low (green/yellow circles). With such a large breakout, and the 6 Day Rolling Pivot Range low still below the entry level, this is a good opportunity to instead, place the stop loss at the breakeven entry point to try to turn this into a "no can lose" situation.
However, keep in mind the market is always susceptible to gap opens and we are coming into the weekend, the longer period of time that the market is closed and increasing chances for gap opens. In this case, news could effect the opening price for the better or worse when it reopens and this could open below our stop loss, increasing risk of larger than expected losses as well as turning our "no can lose" trade into a loser nonetheless. ALWAYS BE VIGILANT!
Note
I also want to mention to notice the red 14 Day Moving Average crossing over the yellow 30 Day. These are my Daily Pivot Moving Averages and are good secondary, confirming indicators.Note
Trailed stop loss
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