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 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
For more on Positive 16 Year Cycle: