Our July 30 analysis flagged 27,033.21 (the 200 MA) as the level to watch, and we need to look at NQ again because we saw a huge green candle for the 30 July session. NQ rallied 3.8% off that support zone and now we are at a point where the bulls are either going to follow through and we see the next leg of the bull market commence, or we move lower to test that support zone once again.
Key Support and Resistance Levels
Major Resistance
| Level | Notes |
|---|---|
| 28,300 – 28,900 | Mid-July consolidation shelf, now being retested from below; the immediate battleground |
| 29,663.02 | Faster moving average; the next real hurdle if the shelf is reclaimed |
| 31,100 | Early June swing high, the year’s high so far |
Major Support
| Level | Notes |
|---|---|
| 27,052.66 | Slower moving average; held on the recent test and remains the key trend-defining level |
| 27,156.75 | Recent swing low, essentially confirming the 200 MA test |
| 23,872.50 | April correction low; the deep structural support, not near-term relevant |
Possible Trades
Bullish scenario — shelf reclaimed
- Entry trigger: daily close back above 28,900, confirming the mid-July shelf is reclaimed as support
- Stop: below 27,900
- Target: 29,663 initial, 31,100 extended
Bearish scenario — shelf rejects the bounce
- Entry trigger: daily close back below 27,900, signaling the current rally is fading against the old support zone
- Stop: above 28,900
- Target: 27,157 initial, 27,052 (200 MA) as the level that must hold to keep the broader trend intact
Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. This analysis is for informational and educational purposes only and does not constitute financial advice. Nothing in this article should be construed as a recommendation to buy or sell any security or financial instrument. Always conduct your own due diligence and consult with a licensed financial advisor before making any trading decisions.
