Nasdaq Futures are trading at 19,563, recovering 2.28% from a low of 19,139.25. This recovery follows a decline marked by aggressive selling pressure over the previous weeks.
Key resistance levels include 19,650, 19,775, 19,870, and 19,885, where profit-taking may occur. These zones are critical for short-term traders, with potential consolidations and minor pullbacks expected at these points.
Support Levels To Watch
Support levels for possible profit-taking on shorts are identified at 19,493, 19,442, 19,415, 19,365, and 19,215. Traders are advised to reconsider positions based on movements at these levels.
Long positions should avoid chasing highs above 19,770. Instead, look for retracements to support levels like 19,450–19,500.
Speculative shorts can be positioned at key resistance zones, particularly if order flow indicates exhaustion. Profit-taking should occur at High Volume Nodes and Point of Control levels downwards.
Monitoring order flow at critical levels will assist in assessing market momentum in the next 24 hours.
The recent bounce from 19,139.25 to 19,563 reflects buying interest after a period of downward pressure. Recoveries of this nature often result from a combination of short-covering and renewed confidence among buyers, making it essential to determine whether strength can persist or if another downturn is likely.
Key Resistance Considerations
Current resistance levels—beginning at 19,650 and extending towards 19,885—represent areas where sellers may regain control. Each of these levels has historical context, serving as points where prior rallies have stalled. This makes them logical locations for profit-taking among those holding long positions. A rejection at any of these points would reinforce bearish sentiment, particularly if selling accelerates with volume.
On the other hand, support remains structured between 19,493 and 19,215. Short sellers who entered positions earlier may scale out as prices near these zones. If buyers step in convincingly within this range, price stability could follow, offering opportunities for well-timed entries. That said, any sustained break below 19,215 would suggest downside momentum is returning.
Long entries remain more attractive on dips rather than at excessive highs. Anything above 19,770 carries elevated risk, particularly if momentum weakens. A more calculated approach involves waiting for retracements into the 19,450–19,500 range, where risk can be managed more effectively.
Opportunities for speculative shorts arise at the identified resistance levels, especially if price stalls and order flow signals waning demand. If a position is taken, profit-taking should prioritise high-volume zones and the Point of Control areas below. Reaction at these points can indicate whether additional declines have potential or if buyers are stepping back in with strength.
Observing order flow through the next day will be invaluable. Patterns near defined resistance and support areas provide a clearer indication of market bias. Tracking whether liquidity builds at either extreme will inform whether momentum can persist in the current direction or if shifts in positioning are beginning to emerge.
