Potential Scenarios…
The Qs are currently testing
critical hourly downtrend support (resistance
on longs) as we approach midday, with the 13-minute trend doing its best
impression of a Red Sox June lead — as in "it looks good so far, but will
it last?" Early morning trade pace has been on the choppy side, with
Friday’s highs and the hourly trend holding us to the north.
Potential scenarios from here include (1) declining hourly price momentum
defined in part by a vertical stochastic rise with little price movement which
sets up a further tradable retracement (perhaps later leading to strength
divergence on the subsequent drop and a cross on the hourly at a better angle,
but let’s not get ahead of ourselves), and (2) a consolidation break through
hourly resistance led by improving support angles on the three- and/or 13-minute
charts. With respect to longer-term trade potential, #1 might actually result in
a decent multi-trade sequence, while #2 may be more helpful to those managing
long trails from Friday and looking for a further profit pop.
11:30 A.M. ET
Good Trading!