Nasdaq 100 Eyes New All-Time Highs Amid Potential Breakout

The Nasdaq 100 is on the verge of a potential breakout towards new all-time highs, as bullish momentum continues to drive the tech-heavy index higher.

Technical Analysis: Nasdaq 100 Breakout in Focus

On the daily chart, the Nasdaq 100 is currently trading above the upper resistance trendline of a wedge pattern. A daily close above this trendline could encourage traders to enter long positions, providing additional upward momentum in the near term.

However, there is a key resistance level at 21,946, which must be cleared to confirm the breakout. If the index breaks above 21,946, it strengthens the case for a rally towards new all-time highs, with the next major resistance at 22,132.

Key Resistance and Support Levels to Watch

• Immediate resistance: 21,946
• Major all-time high resistance: 22,132
• Psychological resistance: 22,500, followed by 23,000
• Support levels: 21,663, followed by 21,418
• Stronger technical support: 21,200 (lower trendline of the wedge)

A break above 22,132 would put the index in uncharted territory, meaning there would be no technical resistance above. In this scenario, traders may set their sights on 22,500 and 23,000 as potential upside targets.

Conversely, a rejection at resistance levels could trigger a short-term pullback, possibly sending prices back towards the supportive trendline. A break below 21,418 could lead to a deeper retracement towards 21,200.

Momentum Indicators: Is Bullish Sentiment Holding?

Looking at the MACD indicator, the momentum remains bullish, and the MACD is rising—suggesting continued upward pressure in the short term. As long as this momentum persists, buyers may remain in control, keeping the breakout scenario intact.

Final Thoughts: Can the Nasdaq 100 Sustain Its Uptrend?

With bullish momentum in play and strong resistance levels approaching, traders will be watching closely for confirmation of a breakout or rejection. If the Nasdaq 100 pushes past key resistance, it could open the door for a rally towards 23,000. However, failure to break higher may invite profit-taking and short-term corrections.