- Nasdaq rallied quite nicely during the trading session and quite frankly almost broke out completely.
- I think at this point in time, it’s very likely that short-term pullbacks will attract a certain amount of buying pressure, but we may or may not even get that.
- We closed pretty strongly as the final hour was a little bit of a pullback, but it was very minor in comparison to what happened during the day.
We do have Jerome Powell speaking during the trading session on Wednesday, but really nobody cares. He will have already stated anything new, more likely than not, by now, as typically the second day of the congressional testimony is nothing more than politicians grandstanding. The size of the candlestick is impressive. The candlestick before it was impressive. And it looks like we are trying to break out of this overall consolidation with this latest push higher.
We are within a whisper of breaking out to fresh new all-time highs. And really, there’s nothing to stop here other than maybe gravity. So even if we were to have a negative day, unless something changes quite drastically, I would look at that as a potential setup to get long again during the next session.
We Are Going Higher
Ultimately, this is a market that I do think will break out and go looking to the $22,500 level, but we need to get above the highs of the day and perhaps even a little bit further than that. So somewhere around $22,220, I’m willing to be a buyer here. You do have to keep in mind that we are a little extended, so your stop loss might have to be bigger. But at this point in time, momentum is most certainly with the side of the bullish traders out there.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
