Looking upwards

The year has started with a mildly positive bias in the stock markets. That’s not unusual.
The lunar Red Period will end this week, so we can start looking ahead for the upcoming Green Period.
Things are looking quite good and we are close the point where markets can break out to the upside.

Let’s have a look at the Nasdaq chart (click for larger image):

A narrowing triangle formation is bound to resolve before the end of the month. Upcoming Green Period favors a move to the upside. Once it gets above 2750, we can go to 2850 rather quickly. That’s where important resistance is likely to be met. So we can any use weak days to establish some bullish positions this week.

If we do not get this upwards break, then the odds for the next move will shift completely to the downside, with 2400 as a probable target. So it is necessary to keep our stop-loss near 2570, and we can even reverse position if that level gets broken to the downside.

Good luck, Danny