The bulls remain in full control of the Nasdaq 100, and the recent push through the 3630 LVN suggests further strength ahead. Here are the key levels to trade.
The Bulls Remain in Control
The E-Mini NASDAQ 100 [NQH14:CME] experienced another round of strength after the shorts were squeezed again upon a break of the 3630 LVN we’ve been following. However, the recent break through 3630 is only the latest win by the bulls lately, which began with the defense of the 3405 LVN in early April, and continued with the strong lows that developed after each successive pullback.
Additionally, price has remained bid below the micro composite VPOC at 3551.25, while the bulls have also reclaimed the midpoint of the current 6-month trading range. In all, the NQ appears quite bullish looking out over the next several months, and into the end of the year, as the current range suggests upside expansion targets as high as 4000.
Range Forecasted Targets
The NQ has developed a 328-point trading range over the last six months of action, which spans from 3405 to 3733.25, and has a midpoint at 3569.25, which are essentially the key levels to watch for directional bias with regards to the range. Notice how price chopped around the 3569.25 midpoint for weeks before finally building up enough energy to run the upside buy stops above the 3630 LVN. This implies a continuation to the edge of the range at 3733.25, likely this week.
While the NQ could see further development within the overall range from 3405 to 3733.25, be on the lookout for expansion down the road. An eventual breakout could spark a significant trending move in the direction of the break, likely toward the 50% and 100% range expansion targets over the course of a six-month period.
In essence, if the NQ remain in control, we’ll likely see a continuation toward upside range expansion targets at 3897.75 and 4062 by the end of the year.
Key Levels and Targets
Short term, watch 3677 for early directional bias Tuesday. Failure to hold above this level early in the week implies a retest of the HVN at 3663.25. If 63.25 goes offered, a great buy opportunity could present itself via a retest of the 3630 LVN. Buyers will look to defend this level after taking price bid through it last week, with targets at 3663.25, 3715, and 3768.50.
Failure to gain acceptance above the 3733.25 March high, or failure to maintain acceptance above 3630, implies a return to the midpoint of the range at 3569.25 and VPOC at 3551.25.
Cheers!
Frank Ochoa
PivotBoss | Own the Market
PivotBoss Premium | Premiere Analysis for Professional Traders
PivotBoss Masters | Premiere Training for Professional Traders