Looking to buy Nasdaq 100 futures on possible gap fill
Nasdaq 100 futures were hammered last week on the back of strong volumes, making the next few days important as Alphabet and Tesla become the first of the ‘Magnificent 7’ names to report second quarter earnings after market close on Tuesday. They will set the tone for the remaining group, especially Alphabet given perceived tailwinds for revenues and earnings from the AI revolution.
While momentum indicators such as RSI and MACD continue to give bearish signals, I’d rather buy dips than sell rallies right now given the price remains in a firm uptrend.
But I’m not rushing in just yet. Even though we’ve seen a bid in early Asian trade, you can’t help but think we may see traders attempt to close the gap created on June 13. It’s nearby and momentum is to the downside, after all.
If we see the gap filled, it creates a decent entry for longs given the proximity of the 50-day moving average and uptrend dating back to April 19, two levels that have been respected over recent months.
DS
Buying near 19613 with a stop below 19500 is one potential setup, allowing for longs to target a push towards resistance at 20371 or even the record high set earlier this month. If the trade were to move in your favour consider lifting your stop to entry level, or using a trailing stop, to mitigate reversal risk.
While momentum indicators such as RSI and MACD continue to give bearish signals, I’d rather buy dips than sell rallies right now given the price remains in a firm uptrend.
But I’m not rushing in just yet. Even though we’ve seen a bid in early Asian trade, you can’t help but think we may see traders attempt to close the gap created on June 13. It’s nearby and momentum is to the downside, after all.
If we see the gap filled, it creates a decent entry for longs given the proximity of the 50-day moving average and uptrend dating back to April 19, two levels that have been respected over recent months.
DS
Buying near 19613 with a stop below 19500 is one potential setup, allowing for longs to target a push towards resistance at 20371 or even the record high set earlier this month. If the trade were to move in your favour consider lifting your stop to entry level, or using a trailing stop, to mitigate reversal risk.
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