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.
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