Market really tries to make things easier but sometimes we decide to ignore what price is telling us. First traders needed to wait for 99 to be taken on TNA to chase a breakout, but that level was lowered by the price to 96.50. So no longs should be trapped here on TNA.
On RQLAB Channel we detected intraday resistance for the market at 100.21 and if you reviewed our yesterday’s update you would probably have noticed that the 4.618 extension was 100.31, chart here (link). So far, that was the high for TNA today; 100.31. We sold our TNA longs at 99.80, and we will wait for more information to trade the long or the short side.
Now what? Well, this is a point where we must work on recognizing the probabilities for the market to take out our wall at 101.42 and advance above it consistently, not only in a spike up, but in a trend mode for 105-108 and finally 113.46.
For now immediate average support for the market is at 94.93, chart here (link1) with more detailed fibonaccis here (link2), by opening link 2, things are very clear, should the market take today’s highs, this is 101.30, immediate target is 103.03, with clear level to watch at 101.42, once/if market hits 103.03, previous resistance at 101.42, 100.31 and 100.21 will become support, Ideally, it must hold 101.21, and by doing that we can increase target to 108 once 103 is retaken. Think the path is more clear now and less risky.
As an additional note: Volatility is being stretched too much, 16.14 is next support line on RVX and we seriously doubt that 14.06 line is going to be taken consistently, chart here (link). Reason we are very cautious here.
NFLX
Upper support for NFLX is 123.69, next average support is at 121.78 followed by standard support at 119.95. Above those levels, new target for 129.10 should be consistent.
