Nasdaq 100 tests key resistance at 25,890 – Société Générale

💡 DMK Insight

The Nasdaq 100’s recent stabilization signals a potential shift, but traders should tread carefully. Breaking the descending channel and reclaiming the 50-DMA is a positive sign, yet the index faces resistance near the 25,890 gap. This level could act as a ceiling, limiting upward momentum. If the Nasdaq 100 fails to break above this gap, we might see a pullback, especially as traders assess broader market sentiment and economic indicators. Keep an eye on related assets like tech stocks, which often correlate with the Nasdaq’s movements. A failure to hold above the 50-DMA could trigger selling pressure, particularly among retail traders looking for quick gains. Here’s the thing: while the recent price action looks promising, the market’s volatility could lead to sudden shifts. Watch for volume spikes around the 25,890 level, as they could indicate whether buyers are stepping in or if sellers are taking control. The next few sessions will be crucial in determining if this stabilization is a true reversal or just a temporary pause.