Darren Chu, CFA
Tradable Patterns
Nasdaq100 (NQ) edged lower Friday after strongly reversing from the intraday high in the US afternoon. With the lower January low and high vs the December low and high, any test of the January high in February is now only moderately but increasingly unlikely. Before bears get excited, NQ will need to break below last Monday’s low, which based off Friday’s strong intraday reversal, is moderately likely by the end of this week. The January Gravestone reversal from its upper shadow high together with the early stages of a February Doji further suggest that NQ may have made its high for the major bull market extension that began late 2022. Watch for more volatility Monday with the US ISM manufacturing PMI, Tuesday with the US JOLTS job openings, Wednesday with the US ADP Non-Farm employment change and US ISM Services PMI, Thursday with the US unemployment claims and Friday with the highly anticipated US average hourly earnings, non-farm employment change, and unemployment rate.
The weekly, daily and 4hr RSI, Stochastics and MACD are tiring or steadily sloping down. I am looking to enter short in the red zone (of the daily chart), targeting the green zone for Friday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).
This communication is issued by Tradable Patterns and/or affiliates of Tradable Patterns. This is not a personal recommendation, nor an offer to buy or sell nor a solicitation to buy or sell any securities, investment products or other financial instruments or services. This material is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research. Tradable Patterns 2024. All rights reserved. Intended for recipient only and not for further distribution without the consent of Tradable Patterns.
Recommended content
Editors’ Picks
Gold price keeps the red below multi-week high; lacks follow-through selling
Gold price retains its negative bias through the Asian session on Tuesday though it does lacks bearish conviction. A modest US Dollar bounce, along with a generally positive risk tone, triggers the intraday pullback from a three-week high. However, a combination of factors is holding back traders from placing aggressive bearish bets.
Crypto Gainers WIF, SPX, HYPE: Meme coins soar with Bitcoin’s recovery to $106K
Crypto market bounces back as Bitcoin (BTC) reclaims the $106,000 level at press time on Tuesday, resulting in a refreshed rally in top meme coins such as Dogwifhat (WIF) and SPX6900 (SPX), and Pepe (PEPE).
AUD/USD turns lower toward 0.6450 after RBA Minues, poor China's PMI
AUD/USD is meeting fresh supply toward 0.6450 in the Asian session on Tuesday as traders digest the RBA Minutes and the unexpected contraction in China's May Caixin Manufacturing PMI. Additionally, a modest US Dollar rebound keeps the pair undermined.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.