NASDAQ100 (US100) – Potential Reversal Within Ascending Channel

Jul 20

The NASDAQ100 continues to trade within a well-defined ascending parallel channel, respecting both the upper and lower boundaries, which have now been tested multiple times (marked by orange circles).

Currently, the price is reacting to a rejection at the channel top, near 23,200. This aligns with historical behavior at this resistance zone, suggesting a possible short-term pullback.

The Ichimoku Cloud is showing early signs of weakness:

Price has moved below the Tenkan-sen and is hovering near the Kijun-sen, signaling a possible trend shift.

The cloud ahead has flattened, often a precursor to consolidation or reversal.

Bearish price action is emerging just below the cloud, which often precedes deeper corrections when combined with resistance rejection.



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📉 Bearish Scenario (Highlighted in Chart):

Expecting a short-term retracement toward the mid to lower range of the channel (target zone: 22,900–22,950).

This aligns with previous bounce points and a likely retest of the Ichimoku support structure.

A break below 22,900 would invalidate the channel and suggest a broader correction—watch closely.



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🔑 Key Levels:

Resistance: 23,200 (Channel Top)

Support: 22,900 (Channel Midline / Prior Bounce)

Breakout Zone: Below 22,800 (Channel Invalidated)



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🧠 Trade Idea:

Traders may consider a short setup near current levels (23,070–23,100) with a stop above 23,200, targeting 22,900 initially. As always, watch for volume confirmation and be mindful of news catalysts that may alter sentiment.


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💬 Final Thoughts:

This analysis blends structure (channel) with momentum indicators (Ichimoku) to form a high-probability setup. Whether this becomes a deeper reversal or a temporary pullback, the chart offers a clean roadmap for risk-managed trades.

Jul 21

Trade active