Wednesday is good day to trade Nasdaq 25.01.22Hello, this is Greedy All-Day.
Today’s analysis focuses on the NASDAQ.
Tuesday’s Briefing Results
Chart:
Buy Perspective:
A buy position was recommended upon the breakout above 21812.
The entry zone is marked with the blue box on the chart.
The breakout occurred as a gap-up before the Asian session, resulting in a current gain of approximately 65 points.
Profit: $1,300 per contract.
Recommendation: Consider closing the position here for a conservative approach, as the target has not yet been reached.
Sell Perspective:
The black box indicates the sell perspective zone.
No sell entries were triggered as the ascending trendline was not broken.
Daily Chart Analysis
Chart:
Key Observations:
The current resistance zone is the green box at 21896.75, which aligns with the high from January 6, 2025.
A breakout above this zone would open the next supply zone at the orange box highs, with major resistances at 22111.25 and 22425.75.
While further upside is possible, historical patterns suggest caution: three instances of sharp declines occurred near similar zones.
Recommendation: Stay flexible and prepared for movement in either direction rather than committing to a single bias.
NASDAQ Scenario Analysis
Chart:
Scenario 1: Rising Wedge Continuation
The NASDAQ has been rising in a stair-step fashion since the 21173.5 low, with pullbacks testing support after breaking resistance trendlines.
Evidence: After breaking the blue resistance trendline, the price retested the yellow box before continuing upward.
If 21896.75 (major resistance) fails to break, the price may retest the blue box (red trendline support).
Optimal Strategy: Wait for a breakout above the major resistance at 21896.75 before entering long positions.
Scenario 2: Sharp Decline Possibility
Historical patterns (green box and orange box) show that during the Asian and European sessions, the NASDAQ often rises, forms a supply zone, then sharply declines before the U.S. session.
A similar sharp drop from the red box zone is possible.
Today’s Trading Strategy
Chart:
Buy Strategy:
None.
Reason: Although a breakout above 21896.75 could signal a buy, the risk level is high. New buy entries are not recommended.
Sell Strategy:
Entry 1:
Trigger: Break below the green ascending trendline and 21696.25.
Reason: A breakdown would indicate a potential retest of major support levels (refer to earlier chart analysis).
Entry 2:
Trigger: Break below the orange ascending trendline.
Reason: Completion of the rising wedge pattern (refer to earlier chart analysis).
Conclusion
The NASDAQ is approaching a critical juncture:
For buyers: A breakout above 21896.75 could lead to further upside, but entry at current levels carries significant risk.
For sellers: Focus on trendline breakdowns, particularly below 21696.25 or the orange ascending trendline, to confirm potential downside momentum.
Stay cautious, monitor key levels, and trade strategically. 🚀
