The NDX was the last of the major indices to test it's 100MA, but on Friday morning it was tested and held. It then put in a nice 2 hour rally that covered 48 points top to bottom. For those looking for a low risk directional trade, buying a call at 1905 and putting in a stop at 1903 would have been a profitable one. Once in a first target would be the 23.6 1935 area which under normal conditions may take a day or two, but in Friday the target was reached in 2 hours. Moving average bounces both as support and resistance can offer some good low risk entries.
NDX 20 Day / 30 Minute Chart
Keep your eye on the wedge-like pattern forming. A break of either trend may produce a nice move.
NDX 1 Year / Daily Chart
Besides a bounce off it's 100MA, the NDX will likely be a wild cat again this week with some large erratic swings. A break below the 1896 area could signify some panic selling. There should be some fib support at 1885 should that occur.
Posts
No comments:
Post a Comment