Nasdaq Technical Analysis for August 25
- The following Nasdaq technical analysis shows my slightly bullish bias, and a long trade, with its stop loss and profit target
- Looks to me like the Nasdaq futures are looking again at the round number 13000, where a partial profit can be made on the long trade
- My stop is far and well below recent lows. If the price gets there, I should be out.
- The reward to risk ratio here is low, only 1. And a partial take profit at 13,000, if successful, would still make it less than 1. But the probability of hitting at least 13,000 is high at this point , so it’s a very legit trade to take. If reached, one could adjust the trade to drive the stop loss up even to the entry point. When the price magnets are close and there’s a good chance we’ll get there, it’s an interesting place to consider a quick trade, even if the reward versus risk isn’t high, in the first part of the exchange. The 2nd part of the trade can be restructured to become more interesting, while a trader acquires a “backup”: initial gain on the trade, thanks to the 1st part.
- There is a clear bull flag here as seen in the technical analysis video. This means that the upside potential is still very attractive unless this flag fails. Yet, if it fails and price re-enters the channel, then the stop could be set even closer to what I show below, making the upside potential much larger than the nearest stop, at this place of the technical configuration.
- All in all, slightly bullish and a good enough place to start going long, even if the market waits for the Fed at Jackson Hole. Trade algos technically don’t know what the Fed is, and I see a trade here.
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