Introduction
Nasdaq dropped below the 200-day moving average yesterday (4 November) for the first time since March. The price action for today’s session is already showing strong signs of a bullish reversal. With no red-flag news events today, let’s take a closer look at the technicals and see if there are any possible trade opportunities.
What is the daily chart telling us?
The strongest point in the bulls’ favor is the long lower wick on today’s candle. Sellers pushed NQ well below the rising moving average at 28,310, but buyers brought it back above that level and close to the session high. The daily candle is still open, so where it closes matters. A close above 28,800 would put price back inside the range that held for much of the summer. A close below 28,310 would mean buyers gave up the moving average despite the morning recovery.
The October selloff also gives us a reason to be patient. After NQ lost 31,000, two rallies stalled near 30,000 before price broke lower again. The faster moving average has since turned down to 29,727, making the area just below 30,000 the next significant test if buyers reclaim 28,800.
Support and resistance levels for NQ
| Support | Resistance |
|---|---|
| 28,310 — rising daily moving average | 28,600–28,800 — former support, now the first hurdle |
| 27,616 — 4 November session low so far | 29,727–30,000 — falling moving average and recent rally highs |
| 27,200 — late-July low area | 30,800–31,000 — upper resistance zone |
Possible NQ trades
Long setup: On the hourly chart, look for a close above 28,800 followed by a pullback that holds the level. That gives traders a higher low to place a stop beneath, with 29,200 as an initial target. If buyers clear it, the next area to watch is 29,727–30,000.
Short setup: If NQ rallies into 28,600–28,800 and an hourly candle closes back below the zone, 28,310 is the first downside level to watch. A break below that moving average followed by a failed attempt to recover it would bring the session low near 27,616 back into play. A sustained move above 28,800 would invalidate the short based on that rejection.
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