NASDAQ 100 Forecast Today - 20/01: Attempts To Break Higher

2025-01-20 04:16:30

(MENAFN- Daily Forex)

During my daily analysis of the major indices around the world, the nasdaq 100 is always one of the first ones I look at, as it can give you a good idea as to what risk appetite might end up being.
After all, these are some of the largest technology companies in the world, and therefore we need to have more of a“risk on attitude” in order to throw money at them.

Falling Wedge

It's worth noting that we are trying to break out of a large falling wedge, which of course is a technical pattern that will capture the attention of a lot of traders. Ultimately, I think we've got a situation where people will continue to look at this through the prism of a market that is in an uptrend, and now it's looking for some type of reason to go higher. It has been a very miserable start to the year, as we have been grinding lower and lower, and what can best be described as“a great way to lose money” if you are a short-term trader.

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All things being equal, I do believe that this market will eventually go higher, but I also recognize that we have a lot of work to do in order to make that happen. Because of this, it's worth noting that the 50 Day EMA sits at the bottom of the candlestick for the trading session, and therefore one would have to assume there is a little bit of technical support just waiting to happen. Regardless, this is a market that is going to continue to do everything it can to chop people up, and it looks like it's doing a fine job. Quite frankly, most traders I know have no idea how to get their hands around this type of volatility. It's a very dangerous game at the moment, so position sizing will be the most important thing that you can take advantage of. Longer term though, I think we do eventually break higher.

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