Last week we outlined scenarios taking into account that the NASDAQ was facing a very important resistance. As we are going to see now, this strategy has not changed, the markets continue to indicate caution.
However, I have been able to notice 2 important things that give us a good risk/return with clear levels of invalidation in case we decide to invest, which we will develop in this edition.
1. NASDAQ testing the upper limit of the dark red channel.
2. Bitcoin struggling to maintain its macro support in the 20K zone.
First, our Weekly charts update.
Weekly Charts:
Same message, Mid term precaution for long positions as NASDAQ is below band and we have bearish M signals on both NASDAQ and Bitcoin.
M signal on NASDAQ is pending to confirm, so make sure to check again on friday.
Now let's move to the daily charts.
Daily Charts:
Here what we can see is how both assets are testing a very important support.
For Nasdaq, it is being seen if the limit of the dark red zone and a macro technical support resist.
For Bitcoin, the ATH of the last cycle is being tested while it is at the lower limit of the area with the highest volume traded in the last 365 days.
So in conclusion, we can see how the medium-term (weekly) signals call for caution, while in the short-term (daily) we are facing a very high support zone.
We can take advantage of this in the following ways:
1. Testing longs with low leverage and clear stop losses, using the daily reference chart.
2. Wait to see the outcome and position accordingly, if we break down support on the daily chart give priority to shorts. If we have signs of a bounce on the weekly, position yourself with longs.