Nasdaq futures (NQ) have made a strong double bottom on the momentum indicator (CCI) on the daily chart, and this makes it a very reliable setup for upmove. Therefore, we should be long on Nasdaq futures above 12,500 and more longs can be added on a closing above 10 day moving avg of 12,780. We can stay long for target 13,250 with 12,500 as the stop loss. The Nasdaq futures have a resistance at 13,300 and above 13,400 we can add fresh longs for target 13,800.
Today (Friday) was another large range day. Nasdaq futures (NQ) have lost 10% from their recent high, and they are are still below their 10 day moving average (SMA) and that indicates significant weakness despite today’s recovery rally from 12,200 level, which was defended successfully at 12,208. On the back of the recovery rally today (Friday), the Nasdaq futures can move up further to test the latest 10 day moving average (SMA) in the coming week on Monday or Tuesday, which may be near 12,900. Fresh long positions should be added after a closing above 10 day moving average (SMA).
The Momentum Indicator (CCI) has been holding up (without making a new low) despite significant fall in price this week, in both daily and 5 hour charts, which is a positive sign.
[Bonus Trade] Traders can stay long above 12,500 for target 13,500. Fresh long positions can be added above 13,000 level, with a close below 10 day SMA as stop loss.