NAS100 | Currently leans bullishThe price is showing signs of consolidation after a significant recovery, with bullish momentum evident. The recent movements indicate that NAS100 is attempting to retest key resistance levels while holding above critical support zones.
Key Observations:
1. Trend Structure:
• The price is currently trading within an ascending channel or trend, with higher highs and higher lows.
• The bullish momentum is supported by the 50-period (blue) and 200-period (red) moving averages, which are trending upwards and acting as dynamic support.
2. Support and Resistance Levels:
• Resistance:
• 21,750–21,800: The upper boundary of the channel and a strong resistance zone to watch. This level aligns with recent swing highs.
• Support:
• 21,500: A key support level and a recent consolidation area. Holding above this strengthens the bullish case.
• 20,766: A major structural support zone that aligns with a previous low. A break below would signal a potential trend reversal.
3. MACD (Momentum Indicator):
• The MACD is relatively flat, suggesting the market is in consolidation with reduced momentum. A bullish crossover would confirm a continuation higher, while a bearish crossover could signal retracement.
4. Moving Averages:
• The 50-period MA (blue) is close to the current price and acting as a short-term support level.
• The 200-period MA (red) is further below and aligns with the 21,200–21,300 support zone, providing stronger dynamic support for the medium-term trend.
Possible Scenarios:
Bullish Scenario:
• If the price holds above 21,500, the next target is a retest of the 21,750–21,800 resistance zone.
• A breakout above 21,800 could drive the price toward 22,200, the next psychological and structural resistance.
Bearish Scenario:
• If the price fails to hold 21,500, it could drop toward the 21,200–21,300 support zone.
• A break below 21,200 might trigger a deeper correction toward 20,766, aligning with the previous low.
Trading Plan:
1. For Long Trades:
• Entry: Above 21,600, ideally after a retest or breakout with momentum.
• Target: 21,750–21,800 and potentially 22,200.
• Stop Loss: Below 21,500.
2. For Short Trades:
• Entry: Below 21,500 with a clear break and retest.
• Target: 21,300, then 20,766.
• Stop Loss: Above 21,600.
Conclusion:
The market currently leans bullish, but the resistance zone around 21,750–21,800 is critical. A breakout above this level confirms continuation higher, while failure to break could lead to a pullback. Use caution with entries until momentum or volume confirms a direction.
