Nasdaq ( NQ_F ) Forecasting The Decline & Selling The Rallies At The Blue Box

Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Nasdaq. As our members know, the Index shows bearish sequences in the cycle from the November 22. 2021 peak. Incomplete structure calls for a further decline, targeting 12181.4 area. Nasdaq has made 3 waves bounce recently, when it has reached our selling zone. We recommended members to avoid buying and keep selling rallies in 3,7,11 swings due to bearish sequences. In the further text we are going to explain the Elliott Wave Forecast and the trading strategy.

Nasdaq H1 Elliott Wave Analysis 04.28.2022

Nasdaq correcting the cycle from the February 14303.5 peak. At this moment we believe recovery is still in progress as the price shows incomplete sequences.  Consequently we are calling for more short term strength toward 13382.8-13663.1  area to complete (X) blue recovery.  We recommended members to avoid buying the Index in proposed push up. Strategy is waiting for Blue Box to be reached before selling it.  As the main trend is bearish we expect sellers to appear at the blue box for 3 waves pull back at least. Once pull back reaches 50 Fibs against the  B red  low, we will make short position risk free ( put SL at BE) and take partial profits. Invalidation for the trade would be break above 1.618 fibs extension:13663.1

As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.

Reminder:

Our charts are easy to trade and understand. When you see combination of right side stamp and blue box on the chart, the instrument can be traded. Quick explanation :

-Red bearish stamp+ blue box = Potential Selling Setup
-Green bullish stamp+ blue box = Potential Buying Setup
-Charts with Black stamps are not tradable.  🚫

 You can learn about Elliott Wave Rules and Patterns at our Free Elliott Wave Educational Web Page.

Nasdaq H1 Elliott Wave Analysis 05.01.2022

Nasdaq reached equal legs ( blue box ) area at 13382.8-13663.1 and made turn lower from there.  We got a decent reaction from the blue box. As a result , members who took short trades made positions risk free ( Put SL at BE) and took partial profits. At this stage we call wave (X) blue connector completed at 13543 high. We would like to see break of (W) blue low -04/26 to confirm next leg down is in progress.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.