NASDAQ: Directional Decision Looms at the End of a Sideways Week

In today’s technical section, let’s take a look at NASDAQ, which had quite an interesting week—though not much has changed from a broader perspective, even despite the weight of a busy macro calendar.

Last Friday, the index managed to escape from the previous downtrend by breaking above the green descending trendline. That move hinted at a potential bullish breakout. However, follow-through was lacking, and instead of accelerating upward, the price shifted into a consolidation phase. This sideways price action is now forming a clear technical structure—either a pennant or an ascending triangle—marked by two converging black lines.

Regardless of the label, the key takeaway is that the price is being squeezed between support and resistance, building pressure for a breakout. The upper black line represents dynamic resistance, and the lower one acts as rising support.

From here, the next breakout will be critical. A daily close above the upper resistance will activate a buy signal and likely trigger a move toward new local highs. Conversely, a break below the lower support line would signal a shift in momentum and could open the door for a deeper bearish correction and new mid-term lows.

Will traders make a move before the weekend, or will the decision be postponed to next week’s opening? Either way, this tightening formation is a setup worth watching closely.

Source: https://www.axiory.com/analytics/technical-analysis/nasdaq-directional-decision-looms-at-the-end-of-a