Nasdaq 100 | Technical Outlook
Market Structure
The Nasdaq 100 is currently trading in a controlled corrective phase after its recent recovery rally. Price action shows a loss of intraday momentum, with candles compressing around a key horizontal level, reflecting reduced participation rather than aggressive selling.
This slowdown in price movement is primarily linked to the Christmas holiday period, during which institutional participation is limited and liquidity remains thin. As a result, price is respecting technical levels more cleanly, with no strong impulsive moves in either direction.
Despite the short-term pause, the broader structure remains constructive. On higher timeframes, the index continues to trade above its key moving averages, indicating that the broader bullish trend has not been invalidated.
Key Resistance Zone
Immediate resistance is located at:
25,650 – 25,720
This zone represents:
- Recent intraday supply
- Upper boundary of the current consolidation range
A sustained break above 25,720 would signal renewed bullish intent once normal market participation returns.
Above this zone, further resistance sits at:
- 25,900
- 26,000 (major psychological level)
Key Support Zone
Immediate support is found at:
25,520 – 25,480
This level is reinforced by:
- Short-term moving average support
- Previous intraday demand
A break below 25,480 could open the door for a deeper corrective move toward:
- 25,300
- 25,100
However, such a move would likely require stronger volume than what is typically seen during the holiday period.
Expectations
Bullish Scenario (Preferred While Above Support)
As long as the index holds above 25,480, upside continuation remains possible. A break above 25,720 could trigger a push toward 25,900 once liquidity improves.
Bearish Scenario (Conditional)
A confirmed break below 25,480 would signal a temporary loss of bullish control, exposing the index to a corrective pullback toward 25,300.
Outlook
The Nasdaq 100 remains technically stable, with price consolidating near key levels amid Christmas holiday trading conditions. The broader trend remains intact, and current price behavior suggests patience rather than distribution. A clearer directional move is likely to emerge once full market participation resumes.
