NASDAQ 100 LONG – SIGNAL TERMINATED – STOP LOSS
NASDAQ 100 SHORT – REMAINS VALID
Stock indices did not sustain an attempt of price rebound. Around ten o’clock in the evening Central European Time, important support levels began to plummet again. Yesterday’s analysis of “Streadle” or long and short has so far ended in a loss. In the long position, a profit of up to 26% was open until the evening. Subsequently, there was an update on risk minimization. Today’s wake-up call brought news of the activation of the “stoploss” instruction and the end of the long analysis.
At the same time, however, an analysis for the decline in price was opened. So now a short analysis is active, which can look forward to a possible significant decline in the price of the stock index next week.
ORIGINAL TEXT 29.10. 12:00: Nasdaq Straddle. Yesterday’s stock market sell-off was unexpected and steep for most traders. Now the Nasdaq 100 stock technology index is on the brink of an uptrend. Capital Analysis publishes two analyses at the same time. The first analysis speculates on rebound and rise of the price again. The second then speculates on the use of short input in case of support breach.
Given today’s ECB meeting, a possible rebound and a resurgence of prices appear realistic. Many traders are still not willing to accept a possible variant of a more significant correction of stock markets and try to push the market upwards. The euphoria after the slightest positive message will be quick and strong.
At the same time, any panic if the needs of the market and traders are not met could be overwhelming and relentless.
The long analysis comes with a potential ratio of 2:1. Twice the expected profit in relation to the risk taken. On the contrary, the short analysis for breaking through the supports and a possible sale is not yet limited by the “stoploss” instruction. Significant volatility could continue to unnecessarily affect the outcome of the analysis if sales continue.
ORIGINAL TEXT 29.10. 16:12: Did you take advantage of the rebound from resistance and the rise in the price of the Nasdaq100 stock index? In their published analysis, Capital Analysis analysts adjust the value of limiting foreign exchange risk to 11180 points, thus significantly reducing risk management compared to the original analysis and giving the market a chance to continue earning.
Chart source: WebTrader