Is the Nasdaq Breaking Out?The Nasdaq-100 has consolidated for about two months, and now some traders may expect a breakout.
The first pattern on today’s chart is Friday’s candle. It represented an intraday all-time high, a daily closing high and a weekly closing high. Could those new highs lead to more new highs?
Next, a series of support levels have held since mid-January. The index first held a weekly low from November 27. It next gapped down on DeepSeek worries (January 27), only to form a higher weekly low that held the following Monday when tariff news briefly hit sentiment. After that, the February 7 weekly close held when inflation was higher than expected (on February 12).
Those incrementally higher lows may suggest that support has nudged upward.
Third, a falling trendline along the peaks of December and late January has been breached.
Fourth, MACD is rising. Prices have additionally refused to stay below the 50-day simple moving average, the 21-day exponential moving average (EMA) or the 8-day EMA.
Finally, you have the calendar event of Nvidia NASDAQ:NVDA earnings on February 26. This potential catalyst will be followed by the chip giant’s GTC conference March 17-21, which may support enthusiasm toward AI. (This year incidentally introduces a “Quantum Day” on March 20.)
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