Nasdaq 100 index futures (NQ)
Strategies Technical Analysis Trading Tips

NASDAQ Futures (NQ) Stuck In Consolidation

  • NQ remains within a tight consolidation zone
  • Different ways we can capitalize on the breakout
  • Targets for each direction and what it means for markets in 2023

NQ Remains Within Tight Range Amid Inflation Report

NQ has been stuck in a 574-point range for almost a month now. We saw a huge rally in markets after the CPI release on the 10th of November came in better than expected but since then, markets have gone nowhere. The tight range we have seen all comes down to one important fundamental and that is the next CPI release and Fed meeting. We know that it is very likely that once price breaks out of this range, we could see a big move in either direction so let’s take a look at a few ways we can capitalize on this.

NQ Daily chart showing tight range of the index
NQ Daily Chart

Buying Low, Selling High

We can use a simple range-bound strategy of setting buy limits around the low of the range and sell limits around the high of the range. The question is whether we think it’s wise to hold through the inflation report tomorrow or it’s better to wait it out.

Waiting For The Report Before Striking

Another strategy could be to wait on the inflation report and if it’s a beat, go long NQ during the session with a stop loss below the low of the range, and if it comes in worse than expected, short it with stop losses above the high of the range.

Any strategy adopted now will have high risk but potentially high reward because of the volatility we can expect this week so it’s all up to the trader’s risk tolerance. All shorter-term strategies may not work this week too and it’s something to keep in mind.

Targets If The Breakout Occurs

We can simply extend a measurement of the range that the price has been stuck inside to the upside and the downside to get a picture of where to place our targets. Again, the range is around 574 points so that gives us a bullish target of $12,658.50 and a bearish target of $10919.75.

daily nq chart showing targets for a potential bullish and bearish break
NQ Daily Chart


The inflation report is set to be released at 07:30 CT tomorrow December 13th and the market is expecting 7.3% with the prior being 7.7%. Traders should brace for a volatile week ahead as the FOMC rate decision comes out tomorrow December 14th.