Nasdaq 100 futures haven’t closed below the 200-day moving average for nearly two years. However, after delivering a key bearish reversal candle on the daily timeframe—and with RSI (14) and MACD still flashing bearish momentum signals—that streak may soon come to an end.
Given the market’s history of aggressively bouncing from the 200DMA, near-term price action around this key level could offer clues on longer-term directional risks. That view is reinforced by rising volumes accompanying the latest pullback, along with the proximity of minor horizontal support at 20,400—there are willing buyers around with a platform for a bullish reversal already in place.
If the 200DMA holds firm throughout Tuesday, bulls could look to enter longs above with a stop beneath for protection. Potential upside targets include 21,000 and 21,420.
Alternatively, if the price were to close beneath the 200DMA, the setup could be flipped with shorts initiated below with a stop above for protection. Buyers were lurking beneath 20000 in the runup to the U.S. Presidential election, making that a downside level of note. A tougher technical test awaits around 200 points lower where major uptrend support dating back to early 2023—essentially the start of the AI rally—comes into play.
Good luck!
DS
Given the market’s history of aggressively bouncing from the 200DMA, near-term price action around this key level could offer clues on longer-term directional risks. That view is reinforced by rising volumes accompanying the latest pullback, along with the proximity of minor horizontal support at 20,400—there are willing buyers around with a platform for a bullish reversal already in place.
If the 200DMA holds firm throughout Tuesday, bulls could look to enter longs above with a stop beneath for protection. Potential upside targets include 21,000 and 21,420.
Alternatively, if the price were to close beneath the 200DMA, the setup could be flipped with shorts initiated below with a stop above for protection. Buyers were lurking beneath 20000 in the runup to the U.S. Presidential election, making that a downside level of note. A tougher technical test awaits around 200 points lower where major uptrend support dating back to early 2023—essentially the start of the AI rally—comes into play.
Good luck!
DS
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.