NASDAQ 100 (NAS100USD): Assessing the Potential BreakoutOver the past few months, the NASDAQ 100 (NAS100USD) has demonstrated a clear upward trajectory, marked by higher highs and higher lows—a classic sign of sustained bullish sentiment. However, we've seen periods of consolidation and recent volatility - let's take a look at its current technical landscape.
Current Market Overview:
As of January 29, 2025, the NASDAQ 100 is trading at approximately 21,600, a level that has served as a significant pivot point in recent trading sessions. A decisive move above this threshold could validate the ongoing uptrend and open the door to further gains.
Key Levels to Monitor:
Immediate Resistance : The 21,600 level is crucial. A sustained break above this point could signal the continuation of the bullish trend.
Support Levels : Should the price retreat, the 21,300 - 21,200 are notable support areas to watch.
Recent Developments:
The market has recently experienced heightened volatility, notably a sharp dip around January 27, followed by an aggressive recovery. This shows how unpredictable the market can be and hints at continued bullish movement.
Strategic Considerations:
Breakout Confirmation : A sustained move above 21,600, ideally accompanied by increased trading volume, would provide stronger confirmation of the breakout.
Support Retest : If the price successfully breaches the 21,600 resistance, this level could transform into a support zone. A subsequent retest of this level as support could present a compelling entry opportunity for long positions.
However , considering the Fed decision and fundamental factors around todays announcement - the most likely scenario would be slightly hawkish or a hawkish pause , which would be somewhat negative for the index. This would allow price to experience a temporary drop back down to the previous support (demand) level of 21,200 before buyers re-engage.
Trading Strategies:
Long Positions on Breakout Confirmation : A clear break and close above 21,600 could signal a long (buy) entry.
Long Positions on Retest of Support : A pullback to the 21,200 support level (assuming it holds) could offer a better opportunity to enter long positions.
Disclaimer:
This analysis is for informational purposes only and should not be considered financial advice. Trading involves significant risk, and it's essential to conduct your own thorough research and analysis before making any investment decisions. Past performance is not indicative of future results. Always use appropriate risk management techniques and trade responsibly. OANDA:NAS100USD IG:NASDAQ PEPPERSTONE:NAS100
