2024-09-25 Nasdaq / Nas100Hello, this is ViViD.
Let’s proceed with today’s NASDAQ analysis.
First, let's review yesterday’s NASDAQ analysis results. I mentioned that if a breakout occurs above the resistance trendline, there could be a buying opportunity. If you entered at the yellow box area after the breakout, you could have made around $50 in profit, which equates to approximately $1,000 profit per lot. Additionally, a selling entry point was also reached. Based on the entry point, around $70 profit per lot was made, equivalent to about $1,400 per lot. The total profit for yesterday was approximately $2,400 per lot.
Here is the daily chart of NASDAQ. Yesterday, NASDAQ slightly broke the previous high before dropping back down, changing its pattern from a pennant to a rising wedge. Although the buying pressure on the daily chart is strong, if it fails to break out with strong momentum, it is likely that the pattern will complete and a reversal could occur.
This is today’s trading strategy. First, let's examine the sell perspective. If the price breaks below the rising trendline and the yellow box at the price level of 20,050.75, I recommend entering a short position. Breaking below the rising trendline and the short-term bounce zone in the red box could signal a drop to the lower end of NASDAQ’s trading range. In this case, the price could potentially drop to yesterday’s low around 19,956. If we consider the two blue boxes, yesterday’s low was slightly lower, but there was a strong rebound in that area, suggesting that support around 19,956 remains strong. Therefore, the target for the sell position would be near 19,956. Even if the market sees stronger selling pressure, support from the green box on the left needs to be broken before considering a move down to the purple box. My strategy is to target the 19,956 area for the initial sell, and if the market breaks below the green box, I would re-enter the sell trade and aim for the purple box.
Now, for the buy perspective. In the case of buying, both a breakout of the resistance trendline and a breakout above the yellow box, which is around the 20,143 price level, should occur simultaneously to signal a trend reversal to the upside. The target for the buy would be around 20,190, which is conservative because the resistance between the 20,415–20,250 range is quite strong. It’s important to secure profits cautiously.
There are no major economic indicators scheduled for release today. Therefore, the market might remain steady, following the flow from the European session. If the market moves in one direction, the trend may persist until the end of the session. Have a successful trading day.
- ViViD -
