Nasdaq100 4H Timeframe Analysis

Nasdaq100 4H Timeframe Analysis

Trend Analysis
On the 4-hour timeframe, Nasdaq100 was initially in a downtrend, characterized by lower highs and lows until reaching a major support level at 20,500. After testing and retesting this major support, the price reversed and moved upward, breaking through the minor key levels between 21,000 and 21,300. This breakout marked a change in trend direction, shifting from a downtrend to an uptrend. The price is now creating higher highs (HH) and higher lows (HL), signaling further bullish momentum. Liquidity was formed below the minor key resistance at 21,300, which sets up a potential continuation pattern for the uptrend.

Price Action Expectation:
Wait for the price to retrace back to the minor key resistance zone around 21,350 and confirm that the trend is continuing upward. The breakout above 21,300 should provide confirmation that the bullish trend is intact, with the next move targeting the next resistance level at 21,680.

Trade Setup:

Trade Type: Buy Limit
Entry: 21,350.0 (upon price retracing back to minor key resistance and confirming trend continuation)
Stop Loss: 21,190.0 (below liquidity zone to avoid false breakouts)
Take Profit: 21,680.0 (targeting the next minor key resistance level)
This setup capitalizes on the liquidity formation and breakout above the minor key resistance, aiming for a continuation of the uptrend.

Fundamental Outlook:
Overall, Trump’s policies on trade will influence investor sentiment globally. If Trump’s trade overhaul creates a favorable business environment and fairer trade deals, the Nasdaq-100 could experience growth, especially in the tech sector. However, if trade relations deteriorate or tariffs increase, the index might face increased volatility. The Nasdaq-100, as a key barometer for U.S. economic growth, will reflect the market’s confidence in Trump’s ability to navigate these challenges.

In conclusion, while the Nasdaq-100 could benefit from Trump’s promises of deregulation and improved trade deals, the market must brace for the volatility that often accompanies his unpredictable policy shifts. Investors should remain vigilant to any changes in trade dynamics that could impact the performance of major tech stocks and the broader market.

Risk Management:
Maintain a 1:2+ risk-to-reward ratio for optimal returns.
Ensure that your position size is aligned with your account equity and risk tolerance.
Be cautious of false breakouts by monitoring liquidity zones and adjusting your stop-loss if necessary.

Trading involves substantial risks and may not be suitable for all investors. Always seek guidance from a financial professional if you’re unsure about trading decisions.