Good morning Traders!
The fast pace cycle of interest rates hikes by the FED, has seen strong selloff in big tech over the past year. Today’s market expectations, is for FED to hike the interest rate by another 0.25%.
FANG Index
The FANG index has been in a downtrend on the Weekly chat over the past year, after reaching a low of around 4100 in November 22, the market found more buyers which were able to confirm a new uptrend on January 23. After a strong push to a new Higher High, the market has found Resistance at around the 6000 level. And after a pullback to test the 5000 level from above, the market has made it’s way up again, toward the 6000 area.
As the market moved higher fast from it’s swing Higher Low, for a potential setup, I’d like to see further compression of price underneath the 6000 area to allow for a potential tighter stop loss.
However if the market will break the 6000 area without further compression, then I will be looking for a potential retracement setup, if and when the market will pullback to test this level from above.
Happy Trading!
