Trading the Trend: long NASDAQ 100 but on a retracement lower
Since the NASDAQ 100 has likely resumed its 2023 uptrend we would like to go long the index but do so on a minor retracement lower towards 14,940 with a stop-loss at 14,430 and an upside target around 16,000.
(Video Transcript)
Long Tesla trade going well
Hello and welcome to this week's Trading the Trend on Wednesday 11 October 2023. Last week we went long Tesla shares and we did so around $245.80 and you can see here that this trade has worked out quite well so far.
We've risen to $265 so what you can now do is move your stop loss level either to break even or I would just move it to below the last reaction low, that's to say a low which is lower than the candle to its left and to its right and that was made on 6 October.
So I'll just place it below the 6 October low around $250.70. So even if the Tesla share price were to reverse lower we would make a small profit on this trade. Otherwise, I would let it run because it could well head all the way back up again towards the high seen back in July around the $300 mark.
Go long NASDAQ 100
Now with regards to this week what I would like to do is to go long the NASDAQ 100 because I expect the uptrend we've seen since the beginning of the year to have resumed and that the corrective moves we've seen since July of this year were exactly that, they were just a correction in an uptrend.
Therefore, I would like to buy into this rally we've seen over the last few days as the Federal Reserve becomes more dovish.
Now I wouldn't do so straight away here, I would wait for a retracement to the downside perhaps taking us back down again towards the late September highs, so around 14,940 you could perhaps go long and place your stop loss below the recent lows here seen at the end of September and beginning of October.
So this week's Trading the trend is to go long the NASDAQ 100 on a retracement lower though towards 14,940 or so with a stop loss at 14,430 and an upside target around the 16,000 mark.
Find out how to buy Birkenstock shares as they launch on the NASDAQ today.
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