Nasdaq 100 Index in a Descending Channel – What’s Next?
The Nasdaq 100 Index is currently trading within a descending channel, indicating a downtrend. The current price is around $20,784.72, near the lower boundary of the channel. For the market to reverse, the price needs to break above the upper boundary of the channel, signaling a potential shift to an uptrend.
🚩 What Needs to Happen for the Market to Go Up?
1️⃣ Break Above the Upper Boundary: A breakout above the upper boundary would suggest a bullish reversal. The first resistance level above the upper boundary is around $21,629. If the price clears this level, the next major resistance could be at $22,000.
2️⃣ Volume Confirmation: A strong buying volume should support any move above resistance to confirm the breakout.
3️⃣ Positive Catalysts: Favorable news or economic data could provide the needed push to break through the upper boundary.
⚠️ If the Lower Boundary Breaks…
If the price falls below the lower boundary, the next support level is near $20,383. If the price breaks through this, the next potential support is around $19,630.
📊 Key Takeaway:
Watch for a breakout above the upper boundary, with $21,629 and $22,000 as potential resistance levels, or a breakdown below the lower boundary, with $20,383 and $19,630 as key support levels. Where do you think the market is headed? Share your thoughts!
🚩 What Needs to Happen for the Market to Go Up?
1️⃣ Break Above the Upper Boundary: A breakout above the upper boundary would suggest a bullish reversal. The first resistance level above the upper boundary is around $21,629. If the price clears this level, the next major resistance could be at $22,000.
2️⃣ Volume Confirmation: A strong buying volume should support any move above resistance to confirm the breakout.
3️⃣ Positive Catalysts: Favorable news or economic data could provide the needed push to break through the upper boundary.
⚠️ If the Lower Boundary Breaks…
If the price falls below the lower boundary, the next support level is near $20,383. If the price breaks through this, the next potential support is around $19,630.
📊 Key Takeaway:
Watch for a breakout above the upper boundary, with $21,629 and $22,000 as potential resistance levels, or a breakdown below the lower boundary, with $20,383 and $19,630 as key support levels. Where do you think the market is headed? Share your thoughts!
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Related publications
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.