Comprehensive Analysis of NQ Trading on May 29, 2024
Introduction
The trading session for the Nasdaq 100 (NQ) on May 29, 2024, provided significant opportunities for traders, as outlined in the premarket analysis earlier in the day. This article provides a comprehensive analysis of the day’s trading activities, focusing on technical indicators, strategic decisions, and outcomes.
Premarket Analysis Recap
In the premarket analysis, the NQ market showed signs of volatility and mixed sentiment:
- The market opened below the 4-hour fair value gap, indicating potential undervaluation and a setup for a bullish reversal.
- The 6:25 AM candle formed a wild outside bar candle with a long wick, suggesting uncertainty and volatility.
- Despite a bearish bias on shorter time frames (15M/30M/1H/4H/D), the Monthly and Quarterly time frames (M/Q) showed bullish sentiment.
- The market was positioned below the 14 EMA and 200 SMA, confirming the bearish sentiment.
- Key targets and levels were identified, including the 14 EMA, London Low (18,797), Bank Open (18,813.50), Top 4-Hour Fair Value Gap (18,833), Asia Open & Monday Open (18,874.75), and the 200-Day SMA.
Market Open and Trade Execution
At market open, the NQ exhibited aggressive upside pressure with a long wick, prompting a long position entry with 2 contracts:
- Trade 1: Entered a long position with 2 contracts, targeting key levels identified in the premarket analysis.
- Targets included the 14 EMA, London Low, Bank Open, Top 4-Hour Fair Value Gap, Asia Open & Monday Open, and the 200-Day SMA.
- Initial stop loss set at 25 ticks for both entries.
- Added 2 more contracts after the price crossed over the 14 EMA on the 5-minute chart at 18,813.50.
- Adjusted stop loss to +10 ticks after the position gained 40 ticks, securing profits and minimizing potential losses.
Trade Outcome
Both trades were successful:
- The first trade achieved its profit targets as the price moved aggressively to the upside.
- The second trade added to the profitability of the day, capitalizing on the bullish momentum observed at market open.
Recap of Trading Day
Despite a bearish bias going into the market open based on shorter time frame analysis, the decision to take a long position proved successful:
- Market Reaction After Hours:
- The market proceeded to decline after hours, closing at 18,746.75, which was below the closing price.
- This movement confirmed the downside bias observed earlier in the day.
Conclusion
The trading session on May 29, 2024, provided profitable opportunities for traders in the Nasdaq 100 market. The premarket analysis helped identify strategic entry points and manage risk effectively. Despite initial bearish biases, the decision to take a long position at market open based on technical analysis and market conditions was validated by the day’s trading outcomes.
Moving forward, traders should continue to monitor key technical levels and market sentiment to optimize trading strategies and capitalize on future opportunities in the Nasdaq 100.
End of Article
This detailed analysis provides insights into the NQ trading session on May 29, 2024, demonstrating how technical analysis and strategic decision-making can lead to profitable trading outcomes. If you have any further questions or would like to explore more trading strategies, feel free to reach out!
Disclaimer:
The information provided in this blog post is for educational and informational purposes only. It should not be considered as financial or investment advice. Trading and investing in financial markets involves risk. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. The author does not accept any liability for any loss or damage which may arise directly or indirectly from reliance on the information contained in this blog post.
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