Nasdaq 100 (NAS100) Experiences Pullback After Testing Resistance Zone

Market Analysis – December 23

The Nasdaq 100 has maintained a bullish trajectory since testing the demand level at 17637.0 in August, when the market was oversold. This upward movement has been characterized by higher highs and lows. However, a recent 6.43% decline occurred after the price tested the resistance boundary of a bullish channel on the daily chart.

Nasdaq 100 Key Levels

Demand Levels: 20772.0, 20129.0, 18434.0
Supply Levels: 20068.0, 22500.0, 23000.0

Nasdaq 100 Long-Term Trend: Bullish

The current bullish momentum is driven by the breakout of a symmetrical triangle pattern, with the Smoothed Heikin Ashi candles turning green, signaling upward movement. This bullish channel has propelled the price to an all-time high of 22068.0.

On December 16, a bullish candle reached the resistance boundary of the parallel channel. At this point, the Stochastic indicator signaled overbought conditions, leading to a sharp decline to the support level of 20771.0. Despite this dip, the Smoothed Heikin Ashi candles remain green, indicating that the retracement may be a temporary pullback rather than a trend reversal.

Nasdaq 100 Short-Term Trend: Bullish

On lower timeframes, the price has bounced off the support level at 20771.0, with a bullish order block at this level. This zone could serve as a launchpad for a potential rally upon a Return to Order Block (RTO), reinforcing the overall bullish bias. By monitoring forex signals and key levels, traders can better anticipate future price movements and capitalize on market trends.

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