Looking at the daily picture, after having broke down the clouds, the Nasdaq 100 fut is triggering, a triangle formation in progress in a new broad bear trend !
Indeed, recent and current price action should be seen as a natural pullback towards the former support area which became now the new resistance to break, in order to neutralise, temporary, the ongoing downside price action triggered a couple days ago by a successive of long black candles !
So what are the implications of a triangle breakout : a +/- move of 545 points, targeting respectively :
ON THE UPSIDE : 15’315 (roughly the top of the clouds resistance area )
ON THE DOWNSIDE : 13’896 (former weekly double top pattern seen in last February-April
Interesting to note the 38.2% Fib ret (@ 14’761), of the downside move from 15399 to 14’367, also coincides to the triangle breakout level on the upside !
Last but not least, the Lagging span also failed to recover above this important level…
Looking at the current price action, the odds are likely for further downside towards the triangle base.
As always, monitor closely, shorter intraday time frames to get more clues which will help you to act accordingly.
Have a nice day 🙂
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