reading time: 3 min
Introduction
Nasdaq futures are up 20% year-to-date and, after testing the ATH on October 6th, look to be gearing up for another push higher. Technicals all point toward a bullish market for NQ, and now that we are moving into earnings season, it could push the index even higher.
Technical Analysis
There is a big ascending triangle on the daily chart which if we break the ATH, could give us targets of $35,000. The price is also well above both moving averages, the 50 and the 200. The market is rewarding dip buyers and patient traders, as overall medium- to long-term bulls are all in profit.
We see almost no case for the bears at this stage regarding the technicals, but it is important to keep an eye on geopolitical events and the earnings calendar because that can create a quick shift in sentiment. For now, we can only go off what we see and what is currently happening on the chart.
Possible Trades
Bullish candle reversals can be used to enter longs as long as the market is in a retracement, like we are seeing at the time of writing (14 October). As long as price remains above the ascending triangle on the daily chart and, preferably, above the 50 ma we are bullish.
This analysis is for educational and informational purposes only and does not constitute trading advice or a recommendation to buy or sell any futures contracts. Futures trading involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial professional before making trading decisions.
