Nasdaq 100 breaks out of narrow range to book in $490 of profits
Consumer confidence report released at 10:00 am today did not produce any significant movement. However, one thing's for sure, today started with a gap down and it never looked back. What does this tells us? It is a NOT a good day for Long!
Price remained pretty much range bound for around four hours and when it finally broke out of the range, I was all ready to capture the move. The break came at about 15:30, pretty late into the market. I shorted 1 contract at 1581 and another 2 contracts at 1577.5. My stop loss was at 1585 and my profit target at 1570.5, just half a point above 1570. It's never a good idea to put your profit target at directly 1570, since this represents natural support which price might not even touch. I have learnt to place my profit targets or stop loss slightly above or below supports and resistance. The trade ended in 45 minutes with $490 profits.