(MENAFN- Daily Forex) Potential signal:

• I'm a buyer of the NASDAQ 125,100 with a stop loss at 24,800.
• I would add every 125 points, finally taking profit at 26,000.

The NASDAQ 100 rallied quite nicely during the trading session on Wednesday as we continue to test the 25,000 level. The 25,000 level of course is a large, round, psychologically significant figure, and an area that has been tested a couple of times now, and it looks as if it is going to continue to be crucial. If we can break above there, then it opens up the possibility of a move to the 25,500 level. Short-term pull banks continue to see plenty of support underneath, as we have been in a nice up trending channel for a while now.

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Beyond the obvious 25,000 level, there are a lot of things going on in this market that I think will have a certain amount of influence on what's going to happen next, and if we can break above that level, then I think it opens up the possibility of a bigger move to the upside. At that point, we might see a bit of a“FOMO trading” coming into the picture, and I think short-term pullbacks open up the possibility of buying opportunities. With this being the case, the market is likely to continue to see a lot of value hunters coming into the market on dips, especially now that the 50 Day EMA sits at the bottom of the channel, which has been in effect for multiple months.

EURUSD Chart by TradingView

Keep in mind that the NASDAQ 100 will move up and down with risk appetite, and with the massive influence of the“Magnificent 7”, you must keep an eye on all of the usual stocks as the NASDAQ 100 has essentially become the“NASDAQ 7” over the last couple of years. The AI boom is still in full effect although looking more and more like a bubble every day.

Ultimately, this looks like a market that still has plenty of buyers underneath it and I do think that it's only a matter of time before we break out to the upside. I wouldn't get overly aggressive here, but I can see an argument for buying the NASDAQ 100 on the breakout with a small position and then perhaps building on top of that.

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