Sellers Hold the Line: Will NASDAQ Defend the 21,000 Resistance?

Currently, three critical levels define the landscape for NASDAQ:

1. Lower Black Long-Term Uptrend Line: This line connects the lows since September, serving as the primary support for the index.
2. Shorter-Term Upper Black Downtrend Line: This line connects the highs since the beginning of November, forming a clear descending resistance.
3. Psychological Barrier of 21,000: Marked in blue, this horizontal level acts as a key resistance, coinciding with the upper boundary of a triangle formation.

At present, NASDAQ is battling two resistances simultaneously: the upper black downtrend line and the blue horizontal resistance. This confluence of levels creates a critical juncture where the market must decide its next major move.

Bearish Outlook:

As long as NASDAQ remains below these resistances, sellers have the upper hand. A failure to break higher could lead to a downswing and a retest of the long-term uptrend line. This would align with a short-term bearish sentiment, particularly if the market remains under the influence of technical pressures.

Bullish Potential:

December historically favors stocks, and Donald Trump’s bullish sentiment on markets could also add upward pressure. A daily close above the blue horizontal resistance and the black downtrend line would confirm a breakout. Such a move would signal a long-term buy opportunity, potentially driving the index to new highs.

This week will likely set the tone, with traders poised for either a decisive breakout or a continuation of the consolidation within the triangle.

Source: https://www.axiory.com/analytics/technical-analysis/sellers-hold-the-line-will-nasdaq-defend-the-21-00