Here’s the updated analysis for NAS100 based on the new price action and context provided:
Updated Analysis and Trade Idea:
The NAS100 has deviated from the previous bearish expectations by forming a higher low at the 20,400 level, signaling renewed bullish strength. On the 4H timeframe, the price is now testing structure highs near 20,610, suggesting a potential shift in momentum toward the upside. Here’s the updated outlook:
Key Observations:
1. Higher Low at 20,400:
• The price failed to break below the initial support at 20,400, confirming it as a strong demand zone. This indicates that buyers have stepped in aggressively, supporting a potential trend reversal.
2. Break of Structure Attempt:
• With the Ask price at 20,611.0 and Bid price at 20,610.2, the market is making a strong attempt to break through the structure highs near 20,650-20,700. A sustained breakout above this level could invalidate the previous bearish bias and open the door for higher targets.
3. Shift in Momentum:
• The formation of a higher low alongside increasing buying pressure suggests a possible continuation of the bullish trend. However, confirmation is still required via a clean break and close above the resistance zone.
Updated Key Levels:
• Immediate Resistance: 20,650-20,700 zone. A breakout here could lead to further upside momentum.
• Support Zone: 20,400 remains a critical level for bullish continuation.
• Upside Targets:
• Target 1: 20,850
• Target 2: 21,000 (aligned with the previous major resistance zone).
Trade Plan Update:
• Scenario 1: Bullish Breakout
• Entry: Look for a breakout and 4H close above 20,650. Enter long positions on a retest of the breakout level.
• Stop Loss: Below 20,400 to account for invalidation of the higher low structure.
• Take Profit:
• TP1: 20,850
• TP2: 21,000
• Scenario 2: Range Continuation
• If the price fails to break above 20,650 and consolidates, wait for confirmation of direction. Re-entry short positions are valid if the price breaks below 20,400, targeting 20,000 as the next major demand zone.
Conclusion:
The NAS100’s higher low at 20,400 signals a potential shift in momentum as the price challenges key resistance at 20,650-20,700. Traders should watch for a confirmed breakout to capitalize on further upside, while also preparing for a rejection and reversion to range-bound conditions if the breakout fails. This is a critical juncture, and risk management remains key to navigating either scenario.
This update reflects the change in market structure while providing actionable scenarios for y’all!
~Peace
Updated Analysis and Trade Idea:
The NAS100 has deviated from the previous bearish expectations by forming a higher low at the 20,400 level, signaling renewed bullish strength. On the 4H timeframe, the price is now testing structure highs near 20,610, suggesting a potential shift in momentum toward the upside. Here’s the updated outlook:
Key Observations:
1. Higher Low at 20,400:
• The price failed to break below the initial support at 20,400, confirming it as a strong demand zone. This indicates that buyers have stepped in aggressively, supporting a potential trend reversal.
2. Break of Structure Attempt:
• With the Ask price at 20,611.0 and Bid price at 20,610.2, the market is making a strong attempt to break through the structure highs near 20,650-20,700. A sustained breakout above this level could invalidate the previous bearish bias and open the door for higher targets.
3. Shift in Momentum:
• The formation of a higher low alongside increasing buying pressure suggests a possible continuation of the bullish trend. However, confirmation is still required via a clean break and close above the resistance zone.
Updated Key Levels:
• Immediate Resistance: 20,650-20,700 zone. A breakout here could lead to further upside momentum.
• Support Zone: 20,400 remains a critical level for bullish continuation.
• Upside Targets:
• Target 1: 20,850
• Target 2: 21,000 (aligned with the previous major resistance zone).
Trade Plan Update:
• Scenario 1: Bullish Breakout
• Entry: Look for a breakout and 4H close above 20,650. Enter long positions on a retest of the breakout level.
• Stop Loss: Below 20,400 to account for invalidation of the higher low structure.
• Take Profit:
• TP1: 20,850
• TP2: 21,000
• Scenario 2: Range Continuation
• If the price fails to break above 20,650 and consolidates, wait for confirmation of direction. Re-entry short positions are valid if the price breaks below 20,400, targeting 20,000 as the next major demand zone.
Conclusion:
The NAS100’s higher low at 20,400 signals a potential shift in momentum as the price challenges key resistance at 20,650-20,700. Traders should watch for a confirmed breakout to capitalize on further upside, while also preparing for a rejection and reversion to range-bound conditions if the breakout fails. This is a critical juncture, and risk management remains key to navigating either scenario.
This update reflects the change in market structure while providing actionable scenarios for y’all!
~Peace
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.
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.