NAS100 Overbought - Profit taking ahead

2019年12月23日

The indices have been rising for several years now and I think we are not finished yet for the bigger picture to fall.

• But on a daily timeframe we covered a lot of ground the last weeks without any major correction.
  
• The indicators are overbought and sitting in the extremes.
  
• On the lower timeframe we are also overbought and first signs of a trend change show up.
  
• We have rising trendlines and the 3. touch of the upper TL already occurred.
  
• Now we are moving sideways and failed to bounce of the TL.
  
• I am currently waiting for the retest of the broken TL.
  
  
• IF there is any significant price action (e.g. Double bar, engulfing bar, pinbar) I will place a trade with a probably pretty close SL (around 10-20pips)
  

There could be some nice profit taking which would drive the prices lower even without selling pressure.
If you know how an order book works you know what I mean.