The Daily trend is in a Downtrend technically indicated by following: • Dow pattern- lower tops and lower bottoms (T1-B1-T2-B2). • Price is currently trading BELOW the downtrend line. Prices are trading below the resistance level (R1), 61.8% Fibo & SMA 200. RSI: • RSI is just above the equilibrium level 50. No divergence.
We should take under consideration that prices are below: 1.the downtrend trend-line, 2. the SMA200 and 3. the 61.8% Fibo level. Therefore we will consider short positions.
1. In case of a daily close below the resistance level (R1) at 4400: We will recommend SHORT POSITIONS for the no position holders on NASDQ 100. Take profit.1 at 4084 (S1) and take profit.2 at 4000. Stop loss should be a bit above the resistance level (R2) at 4440, thus the stop loss is at 4450-4480. For Short-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above. 2. In case of a move above the resistance area at 4440-4450 (R2), we will recommend long positions. Take profit at 4675. Stop loss should be a bit below the R1, thus the stop loss at 4357.
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