NDX: Engulfing bar on resistance levels, indicating that the likelihood of deepening the correction increases.
The second bar, after the engulfing is also bearish, which amplifies the signal, but it does not give us a good place for a short position, if someone is trading corrections.
In this case, it is good to wait for the price to be returned at least in the area around 6783 for the purpose of lower risk or to build a short position with several entrances with less exposure now and if the price returns slightly up again.
The trend is upward, which implies only long positions, but only for medium and long-term traders. Now the possibility is for short-term traders.
CCI (50) is still above 0, which also indicates that entry is now very risky. we must have at least one more evidence of stronger negative sentiment, or wait for a price return of around 6783 for a lower risk
Stefan D. Angelov - Head of Stocks Trading
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