Nasdaq Analysis for Tuesday 25.01.14Hello, this is Greedy All-Day.
Today’s analysis focuses on the NASDAQ.
Monday’s Results
Chart:
Buy Perspective:
No buy entry signals were triggered.
Sell Perspective:
While there was a mention of the possibility of a breakdown below the lows, no clear sell entry signals were given.
After the breakdown, the NASDAQ dropped by approximately 180 points but eventually rebounded sharply toward the end of the session.
This suggests that observing for a day to allow for the formation of a supply zone would have been a prudent approach.
Key Points to Note
Chart:
March Futures Contract:
The price initially broke below the Ichimoku Cloud on Monday but re-entered the cloud due to Tuesday’s gap-up opening.
Key Levels:
Cloud bottom: 20980. A failure to hold this support level could have a long-term bearish impact.
Cloud top: 21216, marking an important resistance level.
Perpetual Contract Analysis
Chart:
The perpetual contract shows the price re-entered the Ichimoku Cloud after briefly touching the cloud's bottom.
A bullish candle has formed above the cloud, signaling support.
Key Levels:
Cloud entry: 21005.
Resistance at the 60 EMA: 21085.
Current Market Frame
Chart:
The NASDAQ appears to have entered either the red box or the orange box frame:
Red Box Range: 20788–19818.
Orange Box Range: 20382–21081.
Key Resistance Levels:
The 21081–21085 range represents a critical resistance zone.
A breakout above this level could signal the potential for further rebound.
Today’s Trading Strategy
Chart:
Buy Strategy:
1. Breakout Above 21088.5 (Morning High):
Rationale: This represents a breakout above both the resistance trendline starting from January 7, 2025, and the morning high.
Risk: The price could face immediate resistance at 21123, potentially reversing quickly.
2. Breakout Above 21207:
Rationale: This level marks the top of a previous supply zone following a sharp decline, making it a more conservative entry point.
Sell Strategy:
While the framing structure is complete, the market appears to be stabilizing at the bottom. For now, observing the market and avoiding sell entries is recommended.
Conclusion
The NASDAQ remains in a critical consolidation phase, with the potential for both rebounds and further declines.
For buyers, focus on breakouts above 21088.5 and 21207 for potential upside.
For sellers, it’s advisable to observe the market for clearer signals, as the recent bottoming behavior suggests limited downside in the short term.
Patience and careful observation are key in today’s session. Let’s stay disciplined and trade wisely. 🚀
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