With Nasdaq Futures seeing high volatility in a bearish trend, there are 2 levels that I like for a trade with the thesis that as long as we are below 7210, we are going to test the 6900 lows.
Trade Setup 1: I think a retest of the lows would be a successful and see at least a 100 point bounce.
Directional Bias: Long
Price Target: 7100
Good Entry: 6900-6930
Risk/Reward: Max risk of 30 points, 200 point potential reward
Trade Setup 2: I think a open to the beginning of the week would create a nice short opportunity for a potential of 300 point downside.
Directional Bias: Short
Price Target: 6900
Good Entry: 7200-7230
Risk/Reward: Max risk of 30 points, 200 point potential reward
Trade Setup 1: I think a retest of the lows would be a successful and see at least a 100 point bounce.
Directional Bias: Long
Price Target: 7100
Good Entry: 6900-6930
Risk/Reward: Max risk of 30 points, 200 point potential reward
Trade Setup 2: I think a open to the beginning of the week would create a nice short opportunity for a potential of 300 point downside.
Directional Bias: Short
Price Target: 6900
Good Entry: 7200-7230
Risk/Reward: Max risk of 30 points, 200 point potential reward
