NASDAQ futures technical analysis: Key levels and market outlook

Hello, this is Itai Levitan, bringing you a NASDAQ futures technical analysis at ForexLive.com. Today, we will discuss the key technical levels and technical patterns influencing the market. Watching the following NQ technical analysis video is a must for those that want to dig in. But before, those that seek possible levels to enter a short for a possible retest of the previously broken bullf flag, here they are

Key levels to watch - entering a short from a possible local high šŸ”

Here are the key levels to monitor in the NASDAQ futures market, naked levels of VALUE AREA LOWs or POINT OF CONTROL that algos may sell IF REACHED

  1. 18,812
  2. 18,830
  3. 18,872

The bigger picture and an important double support at NQ 18241 on 31 May, 2024 šŸ“ˆ

We begin with the blue channel, characterized by two touchpoints, some price action in the center, and a few touchpoints at the bottom. Notably, we observe a double support at a critical junction where the blue channel intersects with the lower pane of a previous channel. This junction has proven to be a significant area of interest, supporting the price multiple times. Again, you need to watch the above video to follow the technical analysis logic here.

Reecent bull flag breakout but... a retest potential... which means a possible retracement down expected

The price recently broke out of a bull flag pattern, suggesting potential bullish momentum. However, a proper retest of the breakout has yet to occur. Retests are crucial as they validate the breakout and provide an opportunity for new buyers to enter. Zooming in, we see two touchpoints on the bull flag and additional points where the price tested the boundaries of the flag.

NASDAQ futures technical analysis: Key levels and market outlook
NASDAQ futures technical analysis: Key levels and outlook

Key levels to watch - very important for Nasdaq futures day traders today šŸ”

Here are the key levels to monitor in the NASDAQ futures market:

  1. 18,619.3: The value area high of the volume profile from two days ago. This level is a potential target for partial profits or short entries.
  2. 18,606: Yesterday's value area high.
  3. 18,633: Yesterday's VWAP (Volume-Weighted Average Price), a significant level for gauging intraday price action.
  4. 18,579: Yesterday's value area low.
  5. 18,544: The value area low from two days ago and a potential retest level for the bull flag.

Market expectations šŸ“Š

Given the proximity of these key levels, we do not anticipate significant market moves today. Day traders will likely focus on these levels for short-term trades. If the price approaches 18,544, a retest of the bull flag might occur. This level could see shorts covering and new longs entering, supporting the continuation of the bullish setup.

When do bears gain control? āš ļø

If the price fails to bounce from the 18,544 level and breaks below it, this could signal a bearish setup. The next level to watch would be around 18,400, depending on the timing of the move. However, as long as the price remains above the bull flag and the trendline of the larger channel, there is no significant reason to turn bearish.

Personal note šŸŒŸ

I hope you find this analysis helpful in navigating today's market. Remember, while the charts provide us with valuable insights, staying flexible and adaptable is key. Happy trading, and may the market be ever in your favor! šŸ˜‰

Thank you for tuning in, and have a good trading day. Remember to trade at your own risk and visit ForexLive.com for additional perspectives.