If you’re like me, then you’ve been watching the Nasdaq like a hawk lately. The upcoming presidential election, the sudden halt to stimulus talks and a potential cure to the coronavirus has Wall Street turned upside down.
And the Nasdaq has been no exception to this.
Looking at the charts, the Nasdaq is currently trading on the backside of support… and may create a new trading channel.
Trading channels are ranges in which a market trades between support and resistance. Support consists of the top part of a channel while resistance consists of the bottom part.
If and when the Nasdaq does create a new channel, you have to prepare yourself for the uncertainty that’s going to come…
And good luck trying to find the buy and sell zones — things are about to get a lot more difficult.
If you’re looking to enter a trade right now in the Nasdaq with no drawdown, you might be in over your head.