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Nasdaq100 (NQ) Week Long Bear Flag Consolidation Nears Completion

The Nasdaq100 (NQ) is trying to firm going into today’s European morning, but remains on pace to forming its 3rd straight red daily candle. Significantly, NQ is in the advanced stages of a Bear Flag consolidation, where odds are elevated for a retest of last week’s low sometime this week. A slide to a fresh October low this week would dramatically increase the likelihood of testing the weekly chart upchannel support in the week after. NQ has already formed a lower October low versus the September low, which itself had breached the August low. The weekly RSI, Stochastics and MACD are steadily sloping down, weighing on the daily MACD which is attempting a positively crossover. I am flat after profitably closing shorts yesterday, and am looking to re-enter short in the red zone (of the daily chart), targeting the green zone for Monday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).

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