TradeCompass signals a short bias for Nasdaq Futures today, with well-defined entry and exit levels provided to capitalize on both bearish and bullish scenarios. While the primary outlook suggests fading the move, the bullish setup is also outlined for potential opportunities if price action breaks key resistance levels.
Trade Plan Overview
Current Price: 21,690
Bias: Short (Fade the Move)
Short Activation Level: 21,708
Bullish Activation Level: 21,780
TradeCompass outlines two key scenarios for Nasdaq Futures today: a bearish setup below 21,708 and a bullish setup above 21,780. The focus is on shorting within the 21,708-21,725 range, with specific levels for entry and exits. A bearish move is considered if the price reaches 21,708 before initiating short trades, while a bullish outlook activates only if prices clear 21,780.
Short Setup Activation
If the price hits the short activation level at 21,708, the following entry points are recommended for a staggered approach:
First Short Entry: 21,709
Second Short Entry: 21,717
Third Short Entry: 21,725
Suggested stop-loss level: 21,735 (Adjust as per personal risk management preferences).
This short setup is valid between the range of 21,708 and 21,725, with 21,719 as a potential single-entry level.
Bullish Scenario Activation
The bullish scenario activates only when Nasdaq Futures break above 21,780. If the price clears the Value Area High convincingly from Friday’s trading, traders will look for long trades targeting higher levels.
Bearish Targets (Short Setup)
If the price triggers a short position between 21,708 and 21,725, the suggested profit-taking levels are:
21,686 – Above today’s developing Point of Control (POC)
21,641 – Above today’s developing Value Area Low (VAL)
21,632 – Key level for additional profit-taking
21,590 – Above Friday’s POC
21,568 – Above yesterday’s VAL
21,517 – Near today’s VWAP open
This staggered exit strategy helps manage risk and ensures profits are taken gradually, reducing reliance on a single large move.
Bullish Targets (If 21,780 is Reached)
Should the price break above 21,780, the following levels are key targets for potential upside:
21,828 – Above the first upper VWAP deviation from Friday
21,856 – Intermediate resistance
21,886 – Higher probability resistance
21,940 – Just below the second upper VWAP deviation
22,002 – Above an old naked POC
A breakout above 21,780 suggests further upside potential, with price action likely to continue towards these levels.
Trade Management and Risk Considerations
If the second profit target is reached, consider moving the stop-loss to breakeven. Traders may adjust stops after reaching the first target, but in today’s conditions, allowing the trade more room to breathe may be beneficial.
While the overall bias today is to fade the rally and short the Nasdaq Futures, TradeCompass provides flexibility by outlining both bearish and bullish scenarios. This tool can serve as an additional resource for traders, helping to refine strategies while managing risk.
Important Note: This TradeCompass is an orientation tool and should be integrated into your own trading strategy. It is not financial advice. Always trade responsibly and within your risk tolerance.
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