Good luck with Nasdaq on Friday 25.01.24Hello, this is Greedy All-Day.
Today’s analysis focuses on the NASDAQ.
Breakout Analysis
Chart:
The ascending trendline broke shortly after the Asian session ended and just before the European session began.
Buy Perspective: None.
Sell Perspective: Although the trendline broke, the current market conditions suggest a need for a different interpretation.
At this point, as the entry and stop-loss levels are near breakeven, it’s advisable to exit and observe further movements.
Net Result: Zero profit for both buy and sell positions.
Daily Chart Analysis
Chart:
The daily chart shows the NASDAQ tested the support at the orange supply zone and closed as a bullish candle on 25.01.23.
Key Observations:
The next resistance zone is the green box, above the blue box supply zone.
A breakout attempt on 25.01.22 failed at 22093.5, which is just below the previous high at 22111.25 from 24.12.26.
The daily chart from 25.01.23 indicates a tightening range with higher lows and lower highs. However, no clear directional breakout has occurred yet.
Current Movement
Chart:
The current price action suggests a pennant formation after the breakout above the red box.
The breakout direction will determine the next major move.
Until then, observing the market from the sidelines appears to be the safest approach.
Trading Strategy
Buy Strategy
Entry 1: Breakout above the purple box & red resistance trendline.
Entry 2: Breakout above the green box high at 22111.25.
Additional Notes:
If the pattern breaks upward and surpasses the purple box, the first resistance is 22093.5, with the major resistance at 22111.25.
While resistance near the major zone could result in pullbacks, a strong upward momentum is possible, particularly as past breakouts have led to sharp rallies.
Reference Chart:
Sell Strategy
Entry: Break below the ascending trendline and 21854.50.
Additional Notes:
Despite occasional breakdowns of the ascending trendline, the market has frequently rebounded afterward.
The primary bearish argument is the failure to break through major resistance.
For a more conservative approach, enter short positions only if the support at 21854.5 (the daily support from 25.01.23) fails.
Reference Chart:
Conclusion
The Asian markets will observe a week-long holiday starting next week:
Korea: Closed from Monday.
China: Closed from Tuesday.
Hong Kong: Closed from Wednesday.
This will likely result in reduced trading volume.
With no major news today, the probability of a bearish reversal seems low.
If no significant catalysts emerge, there’s a chance the market will push higher by the close of the session.
Great work this week! Let’s finish strong. Fighting! 🚀
