nasdaq analysis 2024-12-26

"NASDAQ Analysis: Key Levels and Strategies"

Hello, this is Greedy All-Day.
Let’s dive into the NASDAQ analysis.



Let’s start with the 30-minute chart.
On December 24, Christmas Eve, the NASDAQ began to rally right after the U.S. market opened. As shown in the chart, the index broke through the red box, which previously acted as resistance during Monday’s session rebound. Once it surpassed this resistance, a one-way upward movement followed.



30-Minute Chart Trading Strategy

From a buying perspective, now does not seem like an ideal entry point.
While the NASDAQ is showing an uptrend that offsets the strong decline from the orange box on the left, entering at this point would mean buying near the upper boundary of the orange box, rather than the middle or lower levels.

Although the supply zone opens up to the red box above, this depends on sufficient buying momentum to sustain the rally. A conservative buying strategy would be to wait for a breakout above the upper boundary of the red box. A breakout would also mean overcoming the resistance trendline, potentially paving the way toward new highs.

Selling Perspective
For a selling strategy, the first signal would be the breakdown of the ascending trendline. If the NASDAQ breaks below the blue box’s lower boundary, this could be an entry point for short positions.

However, note that the NASDAQ has been consistently following the 20 EMA on the 30-minute chart. Therefore, the first sell signal would likely come from a break below both the 20 EMA and the ascending trendline.

Target Levels
In the short term, the green box serves as the target for any bearish moves. If the NASDAQ breaks below the green box, it would indicate entry into the next price frame. In this case, a decline to as low as 21558 could be possible. However, given the current bullish trend, a conservative approach is recommended.

Conclusion

For buyers: Wait for a breakout above the red box’s upper boundary for confirmation before entering.
For sellers: Watch for the breakdown of the 20 EMA and the ascending trendline as your initial signal. A break below the blue box’s lower boundary could solidify your entry point.
Trend caution: While short-term corrections are possible, the overall trend still leans bullish, so trade cautiously.
Let’s trade smart and aim for success. Best of luck in the markets! 🚀