Today’s trade idea has been consolidating for over a year.
Last week it touched an all-time high and then pulled back into the support of its prior highs.
Read below to see how it’s set up for its next big bull run.
Today’s trade idea is the company that runs the NASDAQ Exchange (NDAQ).
The chart below is its weekly chart because the important perspective here is that it is breaking its 2018 highs after a long consolidation.
There are two key levels, $9, which is the resistance from 2018, and $93, which is the level it stopped at three times before its latest move higher.
This will now be excellent support.
As a result, there are two opportunities.
The first is to play for an immediate resumption of the breakout.
If you look at the daily chart below, you’ll see that the $96 level has been both resistance and support over the last week.
As a result, the immediate trade is to buy if it trades over $96.35 with a stop under $94.
The second opportunity will be to enter on pullback to the $93 level.
The pullback trade will have to be figured out if it happens so, for now, it’s just a reason to keep this chart on your watch list if the immediate trade does not get triggered.
With an FOMC meeting later this week, we’ll likely see enough volatility to move NDAQ either through $96.35 or down to $93.
Rick Nartarian, Chief Investment Officer
The American Investor Daily