Nasdaq 100, in its 2-hour chart, reveals the likelihood of declines. In this post, we expose our bearish perspective.
1. The Elliott wave structure suggests the completion of an upward five-wave sequence. This rally began on October 03, 2019.
2. RSI oscillator shows bearish divergences, which unveil that the price action is currently running in a fifth wave.
3. The sell-side positioning will trigger if Nasdaq's value breaks down and closes below 8,157.5 pts. In a conservative scenario, the potential profit target level is at 8,062 pts.
4. If the bearish movement extends the declines, the technologic index could continue dropping below the 8,000 pts, testing the 7,983.5 even until the 7,870.1 pts.
5. The bearish scenario will be invalid if Nasdaq soars and closes above 8,273 pts, or if the price pierces but doesn't closes below 8,157.5 pts.
Trading Plan Summary
Entry Level: 8,157.5 pts.
Protective Stop: 8,273 pts.
1st Profit Target: 8,062 pts.
2nd Profit Target: 7,983.5 pts.
3rd Profit Target: 7,870.1 pts
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