2021/12/19 19:25 PM – NASDAQ 100 MINI FUT – W1/ D1 – DARK CLOUD COVER !!!

NQ1 100 MF – W1 – DARK CLOUD COVER ! by Ironman8848 on TradingView.com

We are going to look at the weekly and daily time frames.

WEEKLY (W1) :

Last week price action, triggered a bearish dark cloud cover pattern which has neutralized the previous bullish engulfing pattern !!!

The weekly closing level (@15’788), for the first time from a long time, has been below the Tenkan-Sen which should be seen as a warning confirmation signal of a trend reversal; nevertheless, the NQ1 still above two important support levels which are firstly the Mid Bollinger Band (@ 15’567) and the Kijun-Sen (@ 15’363) and this upcoming closing level will be very important to watch.

Indeed, a failure to hold and a clear breakout of 15’363 would be very negative for the future, opening the door for lower levels with focus on 14’374 (former low of October 4th and also 23.6% Fibonacci retracement of the big rally starting in March 2020 @ 6’628.75 towards the ATH @ 16’767.50 reached last month.

Below the next very important support area would be the weekly clouds support zone between 13’645 and 12’515; interesting to note that the 38.2% Fib ret is @ 12’894.50

On the upside and in order to neutralize the ongoing downside risk, the NQ1 should recover at least above 16’330 on a weekly closing price level as such kind of price action would trigger a bullish engulfing pattern, been seen as a first bullish signal calling for a retest of the ATH .

DAILY (D1)

Still under the influence of a Head and Shoulders formation in progress with its neckline, currently roughly at the same level of the daily bottom clouds support area !

Below both the Mid Bollinger Band & Kijun-Sen and the Tenkan-Sen; the last daily closing level (@ 15’788) triggered another black candle and it coincides roughly with the top of the daily clouds support area and also with the ongoing uptrend support line (in green)

RSI below 50,@ 45.03

In that time frame, pressure remains to the downside and in order to neutralise this risk, the NQ1 should quickly recover above the cluster resistance area (16’150) and this on a daily closing basis;
as long as it stays below it the selling pressure will remain, calling for lower level towards the bottom clouds support area , currently around 15’408, which is slightly above the H&S neckline !!!

Last but not least, monitor closely intraday price action in watching at carefully price action on shorter time frames (H4 and H1) to get early signal (s) which will help you to validate or invalidate the implication of the scenarios above mentioned and therefore act accordingly.

Ironman8848 & Jean-Pierre Burki

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All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied. 

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