Congratulations to the bulls.The NASDAQ chart finally break out the important resistance level 1773.13 with a gap, which I have mentioned several times before [1]. Do you think the gap happened here is just by chance or pure luck? Absolutely not ! The chart already reveals the story. If you still can't believe that, I suggest you to read these two books [2] before any trading. The small efforts will pay you off enormously. Yes, it will.
Please also notice that:
- the volume surged, very nice
- the macd formed a golden cross as well
I also think, very soon, I will anounce that 1770 will become an important support level for bulls.
Several days ago, I told our friend Ben it's impossible to see NASDAQ below 1700 before June 11. At that time, he didn't believe me. But now, trust me, he will totally agree with me.
So what we need to do now as an investor and trader ? My rule is simple, follow the trend, sit tightly with your long positions.
Then when should we sell our long positions and took the profits off the table ? Simple, look at the NASDAQ day chart, when the red support line I drew is broken down, it's time to take back our bets on the long side.
The pullback to test the support at 1770 may happen as soon as tomorrow, but don't lose your direction due to the winds from the market fluctuations.
CLFD looks so far so good [3].
[1] important resistance
[2] two books
[3] CLFD
