NQ daily trading plan for 6/28
NQ bulls did end up reversing the course in their favor today. Will they be able to keep it up?
Charts and Analysis:
Today the bulls took the reigns and we saw a decent rally as result. As a result all four of our upside targets were reached after our key level was broke. NQ did not stop there however, it rallied to 15,139.25 and then proceeded to fall under our key level for 6/26. That level also acted as a support which can be seen in the chart below. It is our view that today’s price action was fueled mostly by shorts getting stopped out. We believe that 15,109 is an important level for both bulls and bears. Two sessions in a row 15,109 has been a make or break level, we will be watching this level closely for the rest of the week.
Tomorrow’s session is likely to be a rather volatile in our view. We believe this will be the case because tomorrow we have four different Central Bank leaders speaking at the same time. As you can see below the market will have to deal with the ECB President, BoE Gov, BoJ Gov, and last but certainly not least FED Chair Powell. We would highly recommend exercising extreme risk management if you are trading at 9:30am EST tomorrow.
Besides that landmine for markets we would like to highlight the low volume area which is highlighted by the yellow rectangle. This will likely be a key battleground for buyers and sellers when it is reached. Also of note is the past sessions VAL’s (the white dashed line) and POC’s (the salmon color line). The POC from 6/26 seemed to act as a resistance for today’s rally. We believe the past POC and VAL levels can be quite helpful when trading. It is our view that buyers are likely to try and push the price towards the low volume area which starts at 15,082. If this plays out it will likely happen during the ON session and NQ is likely to go wild when the Central Bankers take the stage. We have a bearish view for tomorrow’s session due to the reasons mentioned above.
Daily Key Levels:
15,073 is our key level going into tomorrow’s trading session.
With a clean break and a hold above 15,073 we would target 15,084 | 15,102 | 15,125 | 15,137 to the upside.
With a clean break and a hold below 15,073 we would target 15,045 | 15,028 | 15,002 | 14,980 to the downside.
DISCLAIMER: We are not Financial Advisors, and all information presented is for educational purposes ONLY. Financial markets can be extremely volatile, as such using good risk management is a must.