2022/01/22 15:25 PM – NASDAQ 100 MINI FUT – W1/ D1 – EN ROUTE FOR 12’894 !!!

NQ1 100 MF-W1-EN ROUTE FOR 12’894 ! by Ironman8848 on TradingView.com

Broad picture continue to be negative !!!

WEEKLY (W1)

Last week price action triggered a long black candle (very bearish , almost a “MARUBOZU”) which roughly closed at its lowest level of the week !

Therefore, it is very important to look very carefully at the price action which took place prior to this long black candle.

The week before, a perfect *DOJI” pattern has been triggered which was a first warning signal of growing uncertainty; in addition, the closing level of this doji was at the same point than the weekly Kijun-Sen, which also added increasing pressure for a potential downside breakout which occured this week.

Last week price action should not be underestimated as the former uptrend channel has also been clearly broken, meaning a TREND REVERSAL CONFIRMED in this weekly time frame !!!

STRATEGIC TARGET IS AT 12’894 (38.2% Fibonacci retracement of the big rally, starting @ 6628.75-16767.50 in March 2020 towards the ATH reached in November 2021.

Please also take note that this level coincides with the weekly clouds bottom level and therefore should be really considered as a KEY PIVOT SUPPORT LEVEL for further development.

Watch also :

1) the Lagging line price action over the upcoming sessions;

2) the monthly clouds in overlay on this weekly chart which gives additional information about downside potential;

3) RSI price action which is still converging to the downside.

DAILY (D1)

Ongoing downside move, confirmed by :

1) the primary downtrend resistance line which started from ATH (16’767.50) towards the pullback attempt which failed @ 16’659.50;

2) the secondary ongoing downtrend resistance line, currently around 15400, which started from 16’659.50

Low reached so far last Friday intraday @ 14’408 with a daily&weekly closing roughly at the low of the day& week @ 16’426.50 which is not positive at all for the upcoming trading session (s)

Interesting to have a look at the trading range (13’788-12’648) of the weekly clouds (on overlay) which should be seen as the next significant support zone .

Clear RSIbearish convergence.

4 HOURS (H4)

No trend reversal detected on this time frame yet, still converging to the downside.

1 HOUR (H1)

Potential upcoming RSIbullish divergence which is not validated yet !

Therefore, watch carefully,, at the next opening trading session, upcoming short term price action which would validate or invalidate a potential short term recovery which, for the time being is expected to be very limited and which should be seen as a short term corrective move.

ONLY A SUSTAINABLE RECOVERY ABOVE THE 15’000 AREA WOULD NEUTRALISE TEMPORARY THIS ONGOING DOWNSIDE MOVE PRICE ACTION

Ironman8848 & Jean-Pierre Burki

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