Nasdaq Futures Analysis: Bulls Hold Key Support Levels

  • Nasdaq futures test key support levels, with bulls holding the trend line since August.
  • Traders eye resistance near July highs as potential catalyst for the next big move.
  • Nvidia’s performance could set the tone for tech stocks when markets reopen.

With US cash equity markets closed in observance of Thanksgiving, the Nasdaq futures rose in the first half of Thursday’s session, tracking a firmer European and Japanese markets. Technology stocks led the gains, with major indices in Europe up around 0.5% after a two-day decline.

US Markets Outlook: Lack of Fresh Catalysts

The contrast between US markets and the rest of the world, particularly China, has been striking this year. US investors anticipate growth driven by a business-friendly president in 2025, while trade tariffs and protectionist policies pose challenges for Chinese and Eurozone markets.

Despite the “Trump trade” already priced in, US markets may struggle to see further substantial gains. However, without a clear technical reversal pattern, caution is advised before acting on a bearish outlook.

Nasdaq Technical Analysis and Trade Ideas

The Nasdaq’s technical picture remains bullish, with support around 20,800 on the futures chart. A breakdown of this level could signal a shift in market sentiment. Key support levels to watch include 20,385 and 20,020.

On the upside, resistance near the July high at 20,983 is a significant level to monitor. A break above this could lead to further gains towards the all-time high of 21,340 and beyond.

Stock to Watch: Nvidia

When markets reopen, NVIDIA Corporation (NASDAQ:) will be a key stock to watch. The chipmaker’s recent performance shows signs of a possible correction phase, with support levels being tested. Follow-through on selling pressure will be crucial in determining the next move for tech stocks.

Remember, investing in assets carries risks and decisions should be made carefully based on thorough evaluation.

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Disclaimer: This article is written for informational purposes only and does not constitute investment advice. All investment decisions and risks remain with the investor.

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