Nasdaq 100
Technical Analysis

A fresh look at the powerful bullish momentum in Nasdaq Futures

  • Analyzing the continued bullish momentum with the RSI and a parabolic curve.
  • There is a potential pullback area at $12,700 where bulls can add to their positions.

Technical analysis

Nasdaq futures have been showing a strong bullish momentum, as the price action continues to make higher highs and higher lows. Currently trading at $13,000, the next significant resistance level is at $13,700, which was a major resistance level in 2022.

The Relative Strength Index (RSI) is also supporting the bullish momentum, as there is no sign of bearish divergence yet. The RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. A bearish divergence occurs when the price makes a higher high but the RSI makes a lower high, indicating that the trend may be losing steam.

A parabolic curve can be seen on the daily chart. If it holds, the bullish case is a strong one.

However, a pullback to $12,700 is possible, which could be a potential area for bulls to add to their positions again. This level also coincides with a previous resistance level that could now act as support.

NQ daily chart showing parabolic curve and resistance level.
NQ Daily chart