The Nasdaq (NQ) futures contract is currently range bound between 15708.75 and 15517.75 as shown on the 120M continuation chart. If prices can fall below this range BEFORE heading above it, then there’s a potential volume profile support cluster between 15384.00 and 15263.75. This zone shows the heaviest volume traded between the low on 8/19 until now. Further supporting this zone is the potential change of polarity (old resistance becomes new support) and double top target ~ 15384, the point of control ~ 15348, and the monthly pivot @ 15323.42. I would look to be a buyer in this volume profile zone. Aggressive entries would be the top of the range (15384.00), moderate entries would be at the POC ~ 15346.75, and conservative entries would be at the middle of the zone ~ 15323.75. This pattern fails below 15235.00. Upside targets would be to scale out in the middle of the current range bound zone ~ 15608.50, the recent high @ 15699.00, and any remaining contracts to let ride with trailing stops. There are a few different products to make this trade. You could use Nasdaq e-mini futures, Nasdaq micro futures, or QQQ call options. Just make sure to use the Nasdaq futures chart for your trigger if you buy QQQ options. The pattern fails below 15235.00, so place any stops below that level.
Example trades:
Long NQ @ 15384, stop @ 15234.75, target 1 @ 15608.50, target 2 @ 15699.00
Risk = -2985.00, target 1 = +4490.00, target 2 @ +6300.00
Long MNQ @ 15384, stop @ 15234.75, target 1 @ 15608.50, target 2 @ 15699.00
Risk = -298.50, target 1 = +449.00, target 2 @ +630.00
