Nasdaq 100 Index Eyes Breakout as U.S. Election Nears: Key Resistance and Support Levels to Watch

The Nasdaq 100 index is showing pre-market gains of over 0.7%, suggesting a potential breakout on the daily chart. As of now, the index is trading around 20,504, approaching a key resistance level near 20,565. A breakout above 20,565 could drive momentum towards the all-time high resistance of 20,759. However, investors remain cautious as the U.S. election, just a week away, introduces uncertainty into the market.

Election Impact: Trump vs. Harris Tension and Market Volatility

With recent polls showing a tight race between candidates Trump and Harris, the upcoming election is likely to fuel market volatility, particularly as we approach November 5th. Since hitting lows in August, the Nasdaq 100 has been on a steady upward trend, consolidating within a wedge formation on the daily chart. A failure to break out of this wedge soon could trigger a pullback, as traders may adopt a more cautious stance until post-election clarity.

Critical Support Levels for the Nasdaq 100

If selling pressure intensifies, traders should watch several key support levels. The first is 20,316, a previous resistance point that may now serve as support. Following this, 20,150 aligns with the ascending trendline, and 19,927 represents a possible floor. Should the index fall below 19,927, we could see a shift toward the 19,610 level, signaling a potential short-term drop of over 4%.

MACD Indicators: Momentum Highlights Market Uncertainty

Looking at the MACD indicators, the recent sideways movement reflects the market's current state of caution and indecision. This stalled momentum aligns with broader investor concerns around election-driven volatility. As traders and investors weigh these risks, understanding these resistance and support levels could prove essential for navigating the Nasdaq 100 in the days ahead.