U.S. Pat. stocks will open lower today, following global stock comment on news that rates on Chinese goods will remain in force until at least after the US presidential election and that the US government is moving to block more supply to Huawei, a painful point for China.
The -0.24% yesterday underperformed the highest record ever, after Bloomberg reported that the trade dispute is not over yet.
However – and this is a surprise – climbed for the open, almost all extended fall mating since closing yesterday. Of course, yesterday's decline continues. However, the graph suggests that the Nasdaq can also offset Tuesday's losses.
Nasdaq Futures 60 Minutes
The Nasdaq rises to the top of a possible falling flag, bullish after a straight rise of 12 hours since Monday from 9:00 AM to 7:00 PM. Although it arrived 13 hours earlier, one of the hours closed at the same price as the previous one.
We have given the purist interpretation for the flag summit, including all intraday prices. However, more aggressive traders may have drawn a tighter line that more accurately reflects the resistance of the vast majority of price promotions.
According to that reading, the price peaked above that trend line at 3:00 EST and responded by falling back. This reaction, the first decrease per hour, on an intra-hour basis, demonstrates the importance of this trend line.
The MACD and the RSI both gave buy signals. The short MA of the MACD crossed the long MA from a sold-out state. The RSI broke above its downward trend for the period during the congestion of the flag, during the rise of the third hour.
An upward breakthrough would show that all available offerings are being absorbed and bulls are willing to increase their bids to find more willing sellers, making prices even higher.
Trade Strategies
Conservative traders would wait for a new record high, followed by a pullback that proves resistance to the flag and then take a long position.
Moderate traders would wait for a lock above 9,100, a round number and the highest price since the decline (red dotted line), and then wait for the return movement for a better price, if not for proof of trend.
Aggressive traders risk a short way back to the bottom of the flag at 9,020 and drive it back up, or long after a close-up above the dotted black trend line, above 9,060.
Trade sample – short set-up
Listing: 9050
Stop loss: 9060
Risk: 10 points
Target: 9020
Reward: 30 points
Risk: reward ratio: 1: 3