Nasdaq 100 Futures (NQ) Technical Analysis – January 8, 2025

Current Price: 21,430

Today's VWAP is apx at: 21,400

Key Levels to Watch for NQ Today

Support Levels:

  • 21,400: Yesterday's VWAP of 2 days ago along with today's VWAP is providing current support. A sustained drop below 21390 which is the developing Value Area Low of today, could open the door to:
    • 21,300: Next support zone.

Resistance Levels:

  • 21,450: Yesterday's Point of Control (POC), likely to act as the next upward target.
  • 21,510: A further level to watch for potential resistance in the short term.
  • 21,540: Yesterday's VWAP at the close, and a key “line in the sand.” Sustained price action above this level shifts the bias to bullish.

Scenarios and Orientation for Today

  1. Trading Range Likely:
    The market may stay within a range, dancing around the 21,400 round number, so expect some volatility and fakeouts. Protect your stops with a buffer to avoid being stopped out by small price fluctuations.

  2. Bullish Above 21,550:

    • Sustaining above 21,550 opens upside targets at:
      • 21,640, yesterday's VAH
      • 21,735, where partial profit-taking is likely.

  3. Bearish Below 21,390:

    • Sustaining below 21,390 opens downside targets at:
      • 21,350–21,360
      • 21,300
      • 20,155 if selling intensifies.

Key Takeaways for Traders

  • Line in the Sand:

    • Above 21,560: Bullish, with potential for another 110 points up.
    • Below 21,390: Bearish, with about 40 points down initially, and up to 90 points lower, if you want to hang on and try.

  • Risk Management:

    • Be cautious of piercing and fakeouts at key levels like 21,400 and 21,540=21,550.
    • Place stops with enough room to account for volatility, especially around the 21,400 round number.

Trade Example Showing How To Use Price Levels Like Yesterday's VWAP

If the price breaks above 21,550 but struggles to go up further, consider a short with a target back to 21,360, setting a stop slightly above (but not too close to) 21,560. This setup offers a high reward-to-risk ratio.

Trade Nasdaq futures at your own risk, and enjoy this orientation for today. Visit ForexLive.com for additional views.