NQ1!, Failed Breakdown has Played Out

A failed breakdown that happened on Thursday was confirmed in Friday’s overnight session. Traders who read the price action as an unfolding story should be able to capitalize on that. The RTH buyers became aggressively active from the day session opening. The day ended with a strong bullish candle. However, the price is right at the resistance. Considering that the price traveled from one end of the balance to the other end traders should be cautious if a breakout happens without price resting. A successful breakout of the existing balance may lead to 8030 initial target. A false breakout would lead to a retest of the middle and bottom of the balance.

The earnings and the FOMC are out of the way and the next week should bring some clarity.

05/04/2019