During the European session, NASDAQ maintained a downward trend and broke below the 21187 level, as shown here:
This movement suggested a potential shift toward a bearish direction.
However, after that, NASDAQ started forming an upward trend and moved sideways. Eventually, the resistance trendline was broken in the blue box area, which you can see here:
This breakout indicated a short-term trend reversal.
The moment this trend reversal occurred coincided with the U.S. market open, accompanied by a significant surge in trading volume that led to a strong upward move.
At this point, the U.S. session closed with a new high compared to the previous pattern, suggesting that the trend has turned bullish.
However, based on the corrective action seen during the Asian session, it seems that the Asian market is not fully accepting the upward momentum.
Here is the current NASDAQ pattern:
It shows an expanding pennant pattern, with both the highs and lows widening over time.
As of now, it is highly likely that the market will continue to move with volatility in both directions until a decisive breakout occurs.
You can view the current situation in more detail here:
In terms of the upside, even though the price could theoretically reach 22000, it doesn’t hold much significance without confirmation from historical data.
Therefore, I recommend taking buy positions only if the market shows a strong inflection point similar to yesterday’s move.
Even if the recent low of 21112 is broken, the price is still within the expanding pennant pattern, and a rebound remains possible.
A conservative bearish view would only be valid if the price breaks below the previous consolidation area that formed just before the strong rally—specifically the black box range, which is around 20723–20680.
Summary:
There’s a high probability of stop-hunting in the current range.
Whether buying or selling, it's recommended to enter only when a clear setup is provided.
Don’t rely on hope that the price will return to your average entry. If the market chooses a direction during this phase, it could lead to unrecoverable losses.
This could be a highly profitable zone if handled correctly, but trading without conviction is like a drug.
Today is not the only opportunity.
This movement suggested a potential shift toward a bearish direction.
However, after that, NASDAQ started forming an upward trend and moved sideways. Eventually, the resistance trendline was broken in the blue box area, which you can see here:
This breakout indicated a short-term trend reversal.
The moment this trend reversal occurred coincided with the U.S. market open, accompanied by a significant surge in trading volume that led to a strong upward move.
At this point, the U.S. session closed with a new high compared to the previous pattern, suggesting that the trend has turned bullish.
However, based on the corrective action seen during the Asian session, it seems that the Asian market is not fully accepting the upward momentum.
Here is the current NASDAQ pattern:
It shows an expanding pennant pattern, with both the highs and lows widening over time.
As of now, it is highly likely that the market will continue to move with volatility in both directions until a decisive breakout occurs.
You can view the current situation in more detail here:
In terms of the upside, even though the price could theoretically reach 22000, it doesn’t hold much significance without confirmation from historical data.
Therefore, I recommend taking buy positions only if the market shows a strong inflection point similar to yesterday’s move.
Even if the recent low of 21112 is broken, the price is still within the expanding pennant pattern, and a rebound remains possible.
A conservative bearish view would only be valid if the price breaks below the previous consolidation area that formed just before the strong rally—specifically the black box range, which is around 20723–20680.
Summary:
There’s a high probability of stop-hunting in the current range.
Whether buying or selling, it's recommended to enter only when a clear setup is provided.
Don’t rely on hope that the price will return to your average entry. If the market chooses a direction during this phase, it could lead to unrecoverable losses.
This could be a highly profitable zone if handled correctly, but trading without conviction is like a drug.
Today is not the only opportunity.
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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.
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.