NAS100 is an indice which comprises of all the technology stocks on the US stock trading. Trading indices should be a long term portfolio. For this purpose, we will be looking at the weekly chart.

- Market structure: Market structure on NAS 100 is still bearish What we are anticipating is a bearish move from the resistance formed at $15,500. The bullish momentum is slowing down and market is due a correction after the whole impulse wave. At this resistance level, we will factor in the adjacent parameters.

Now, the market started moving downwards and made a bearish structure. At the price of 14,755, we have a resistance, and we will add another position on it.

- Trendline: Market is in an uptrend channel. The resistance trendline has been tested twice and now we are waiting for the third test for our short positions. It should also be noted that the trendline is in confluence with the resistance area. Given the structure of a long bullish trend, the trendline test is bound to push the NAS100 bearish for the correction. Also, we have an ascending trendline in formation which might break once the market starts to head down.

- Retracement: The resistance level is a major level and the bearish retracement perfectly overlaps the level. The golden retracement area could act as a catalyst for the NASDAQ to push down hard. Although we broke the golden retracement area, we will still see the bearish momentum floor it down. Maybe a fakeout on the retracement.

- EMA's: EMA 50 has been pierced for the bearish move and has not been tested yet. The EMA 200 is still below the current market prices. The EMA 200 would be our anticipated profit targets. Market may not be retesting the EMA 50 right now as the the price action is reflecting LL's from the previous candle.

- RSI/CCI: Both oscillators are bearish right now. Since market is below its neutral levels, its in a bearish mode. That being said, taking another scale in bearish position, would be aligned with the oscillators bearish bias.

NAS100 is one of the volatile indice and at the resistance level, we are foreseeing at least 3 confirmations to go short on it.

Shortin NAS100 at a stop hunt level

Oct 28 2021

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