Buyers defend key level in the E-Mini NASDAQ 100, which sparks rally into the end of December.
Buyers Defend 4114 LVN
I wrote about the E-Mini NASDAQ 100 futures [CME: NQH15] two weeks ago in my PivotBoss Commentary and offered the following analysis: “NQ bulls may have their first real shot at defending a key level, as prices are quickly approaching the 4114.25 price. This price is a major composite LVN, and is also the exact top of the key range that developed from 4114.25 to 3679.50. The LVN reveals rejection in the volume profile, so the bulls will be looking for opportunities in this zone for a shot at new highs down the road.”
This analysis was spot on, and helped to identify the buy zone where OTF bulls would be defending price for a shot at squeezing the shorts to new highs. Alas, this call alone helped identify a fast 200+ point move from the buy zone back to previous highs.
At the time I wrote that statement, the bears had complete control of the current short term trend, and were looking to force price through the 4114 LVN and into the next HVN below at 4052. However, we sensed that OTF responsive buyers would come off the sidelines to defend the significant LVN in the profile at 4114…and they did.
In fact, sellers pushed price through 4114 initially, but became trapped below this level once they were unable to establish acceptance below it. This resulted in a major short squeeze that sent price rallying toward the 2014 highs.
A 200+ point move from our buy zone is a great way to finish off a fantastic 2014!
Cheers!
Frank Ochoa
Author, Secrets of a Pivot Boss
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