Last week we forecast market to trade in range capped between 11580-11800.
It was a choppy week, Monday Down, Tuesday Up, then Down, Up, and finally Friday make a final boost to 11800.
As spoken last week, DJIA shall face resistance at previous pincer top and 11800 shall be the highest it can go. Clue 1:
Last Friday, DJIA surged to 11800 and close at 11808.80, break above our resistance 11800.
Clue 2:
EMA4 and EMA200 almost crossing.
Therefore,
the chart looks bullish with immediate target poised at 11950.
Support 11650.
Next target is 12100.
Average Trading Range (Weekly Range): 640 pts
Average Trading Range (Daily Range): 205 pts.
Nasdaq 100
Quote my own forecast last week 17-Oct-2011 Mon:
NASDAQ 100 closed the week at 2371.94 still have rooms to "grow".
More optimism on this market and forecast the super bull to go all the way until next resistance at 2395-2400.
To trade for reversal profit, observe 30 minutes chart (like I do) for top down reversal confirmation.
Reckon market to form a double top in line with a stochastic divergence near the resistance level 2395 - 2400.
Instead of going up, Nasdaq 100 traded down to 1/3 retracement level.
I am still bullish on Nasdaq 100.
Sideline:
Watch NQ_CONT chart.
It was trading at 2328.50 and the market is showing a pause for the uptrend.
lets say market retrace, it may drop to 2270 maximum, which we identify this is a strong support, therefore NQ shall not fall below 2270, it is a good level to pick long.
However, if market fall below 2270, stay out.
For aggressive trader like me, aim to enter long at EMA50 (4H), which is 2308.
and aim to exit at 2400.
The BIGGEST Catch for next month is top down reversal as we mentioned the resistance for Nasdaq 100 is 2400, NQ chart is 2430, and therefore, don't forget to observe for reversal in daily and 30 minutes chart, exit at the right time, and never hold your profit until it turns sour.
Till then, Cheers
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