Tuesday Nasdaq Analysis 25.02.04

Hello, this is Greedy All-Day.
Today’s analysis focuses on the NASDAQ.

Monday’s NASDAQ Briefing Results
Chart:

Let’s start by reviewing Monday’s briefing results. On the buy side, after the breakout above 21200, the bullish trend continued without any reversal to a sell perspective, and the gap was completely filled. From the entry point, the price increased by about $360, yielding a profit of roughly $6,000 per contract.
On the sell side, no sell entries were triggered, so there were neither profits nor losses.

Daily Chart Analysis
Chart:

Looking at the daily chart, although the gap was filled, the price started to decline again. Overall, the market appears to be converging, and if a breakout occurs in either direction, a major trend reversal is likely. The upper target seems to be around 22100, and the lower target is approximately 20640.

Convergence Movement
Chart:

Since the market is showing converging movement, it makes sense to trade on a breakout from within this convergence.

Buy Perspective:

Entry 1: Enter long on a breakout above the resistance trendline.
Take Profit (TP): At the horizontal level indicated on the chart.
Entry 2: Enter long on a breakout above 21600.
TP: At the horizontal level.

Rationale:
The resistance trendline reflects a short-term trend, and a breakout above 21600—which is near the high of the U.S. session close—confirms bullish momentum.

Sell Perspective:

Entry 1: Enter short if the ascending trendline is broken.
TP: At the horizontal level.
Entry 2: Enter short if the price breaks below 21113.
TP: At the horizontal level.
Entry 3: Enter short if the price breaks below 20943.

Rationale:
The ascending trendline has been in place since February 3, 2025, and has not been broken since.
In a gap-filled scenario, if a break of the trendline is confirmed, it is appropriate to enter a short position.
The level 21113 represents the lower boundary of a short-term supply zone and is considered a critical support level.
For 20943, which is the low of the sharp drop on February 3, a break could trigger a move down to the major convergence level of 20640.
The white and black boxes on the chart denote areas where significant trend reversals have been observed on the daily chart.

Conclusion

The gap has been filled, so there is no further reason for the price to continue rising, and it’s difficult to confirm a bearish trend solely based on that. We believe that it is best to trade according to the market’s movement.

Let’s adapt our strategy accordingly. Have a great day of trading!