NASDAQ 100 has weekly reversal – go short
On 13 March, I set out the trading tactics for entering a short position on the NASDAQ 100 Index. There had been a long term moving average crossover, one of the set-ups I look for. These don’t give the exact timing of a trade entry, so I chose to enter a short on the next weekly reversal.
This will be triggered today and I go short in my model portfolio for this blog. The position is entered at the Friday 9pm price of 4,341, with a stop loss at 4,600, above the 19 April high.
The original moving average crossover has crossed back over slightly, but the long term top formation remains in place and this weekly reversal is a decisive break below the previous two weeks.
This is the right hand side of a top pattern and I’m expecting this to break below the August and February lows.
NASDAQ 100 Index