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Nasdaq forecast: Interest rates cap the rally near key resistance

NASDAQ has staged a sharp recovery from December lows, reclaiming key short-term moving averages and restoring upside structure. However, this recovery has lost momentum precisely where it matters most—beneath a Daily bearish Fair Value Gap between 25,770 and 25,900.

🔗 Source

💡 DMK Insight

NASDAQ’s recent bounce back is impressive, but it’s hitting a critical resistance zone right now. The index has reclaimed key short-term moving averages, which is a positive sign for bullish traders. However, the real test lies beneath the bearish Fair Value Gap between 25,770 and 25,900. This area is crucial because if NASDAQ can’t break through, we might see a reversal back to the downside. Traders should watch for volume spikes or bearish patterns forming in this range, as they could signal a shift in momentum. If the index fails to hold above these moving averages and retreats, it could trigger stop-loss orders and further selling pressure. On the flip side, if NASDAQ can decisively break above 25,900, it could open the door for a more sustained rally, possibly targeting higher resistance levels. Keep an eye on market sentiment and any economic data releases that could impact tech stocks, as they often drive NASDAQ’s performance.

📮 Takeaway

Watch the 25,770 to 25,900 range closely; a break above could signal a rally, while failure to hold may lead to a pullback.

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