Waiting for major zones to dictate direction

The NQ has been in a steady range for the past 4 days. We failed to break out of the range on Friday, with the 1 hour candle closing back in the range. We wait for critical points of interest to break and follow through to give us sustained moves.

- Break of previous day's low from Friday could signal profit taking and a move to the bottom of the range and possibly breaking out to the downside.

- Break of POI at top of range could signal attempt to test PDH and possible final bull trap up there.

I highlighted the zones on a 1 hour chart below. You really want to wait for sentiment to develop a move and then trade in that direction. Right now, the signals are yielding 2-5 points on average which is not enough to build a position, but it is enough to take profits repeatedly. You need to make sure that you are reasonable with your targets and wait for a significant move to develop for position building. Green zone is where we are looking for bulls to succeed and upside movement. If there is a buyer failure in that zone, we are then short the breaks of the range. The red zone signals possible shorting pressure. If we break that range to the downside, we are looking for shorts. If we have a seller failure there, we will look to buy with stop at SF.

News Announcements for Monday
***No major US announcements

2:00am JPY   Prelim Machine Tool Orders y/y                                                               

3:00am EUR  German Trade Balance                                 

3:45am EUR  French Industrial Production m/m                                           

4:15am CHF  Retail Sales y/y                                 

7:50pm JPY     BSI Manufacturing Index                                             

             JPY     Monetary Policy Meeting Minutes                                                           

             JPY     Tertiary Industry Activity m/m                                  

             JPY     CGPI y/y                                                             

8:01pm GBP    RICS House Price Balance                                                                            

8:30pm AUD    NAB Business Confidence                                                           

12th-14th NZD REINZ HPI m/m