Trade of the week: short NASDAQ 100
This week, we would like to short the NASDAQ 100 index but only on a fall through Friday’s low at 18,902, with a stop loss above last week’s record high at 19,115 and a downside target around 18,200.
Since last week’s NASDAQ 100 record high has been accompanied by negative divergence on the daily and weekly charts we would like to short the index but only on a fall through Friday’s low at 18,902 with a stop loss above last week’s record high at 19,115 and a downside target around 18,200.
(AI Video Summary)
Previous Robusta Coffee trading outcome
In last week's trading update, a short position was initiated on Robusta Coffee based on a bearish engulfing pattern; however, the asset surged to a new multi-year high, resulting in a stop-out.
This week's trading opportunity
This week, careful attention is turned to the NASDAQ 100 due to observed negative divergence and doji patterns indicating potential for a downward reversal. A specific trade recommendation is to short the NASDAQ only if it breaches the previous Friday's low of 18,902, with a tight stop loss at 19,115 and a downside target of 18,200, acknowledging the high risk and favorable reward-to-risk ratio of this strategy.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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