All-Time Highs in Sight: Will NASDAQ Extend Gains or Correct?

On Thursday, I analyzed NASDAQ’s bullish breakout from the symmetric triangle pattern, which set the stage for a strong upside move. At the time, I highlighted two key horizontal resistances marked with orange lines. The price smashed through both levels without hesitation, confirming a powerful buy signal and reinforcing the bullish momentum in the market.

The rally didn’t just stop there—NASDAQ continued pushing higher, reaching new all-time highs. Interestingly, the upper orange resistance that previously acted as a barrier turned into support by the end of the week, a textbook example of resistance-turned-support in action.

As the market opens higher today, sentiment remains extremely positive, with NASDAQ trading at record levels. The key focus now is how the price behaves at these long-term highs. If the price breaks out further and establishes new all-time highs, it would serve as a strong continuation signal, reinforcing the bullish trend.

However, traders should also be cautious. If NASDAQ fails to sustain gains and forms a reversal pattern, such as a rejection candle with a long upper wick, it could signal a short-term bearish correction. A pullback from these levels would likely be a natural consolidation rather than a trend reversal, but it would still present an opportunity for traders looking for short-term setups.

For now, the bulls remain in control, and NASDAQ’s ability to hold or extend new highs will determine the next major move in the coming sessions.

Source: https://www.axiory.com/analytics/technical-analysis/all-time-highs-in-sight-will-nasdaq-extend-gains-o