Nasdaq Futures Analysis for Today

NASDAQ 100 E-mini Futures Analysis for Today

Financial Instrument: Nasdaq 100 E-mini FuturesPrice at the Time of Analysis: 21,725

Key Levels to Watch

Bullish Above 21,760

• Why Bullish Above?A move above 21,760 indicates price is surpassing yesterday’s VWAP and today’s developing Value Area High (VAH). This suggests buyers are gaining control, as price trades above fair value levels that previously acted as resistance.

• Profit Targets for Long Positions:

  • 21,825: A logical profit-taking point, aligning with yesterday’s VAH, a key resistance area.
  • 21,839: An extended target near another resistance zone, offering room for additional upside.

Bearish Below 21,669

• Why Bearish Below?A break below 21,669 puts price under the VAH from two recent days, signaling seller strength and a rejection of higher prices.

• Profit Targets for Short Positions:

  • 21,550: The VAH from two days ago, a critical support level likely to attract buyer interest.
  • 21,403: Positioned just above the VWAP from two days ago, this level serves as a deeper support target for shorts.

Understanding the Tools Behind the Analysis

VWAP (Volume-Weighted Average Price)

VWAP represents the average price of a financial instrument, weighted by trading volume. It provides traders with a benchmark to assess whether the current price is overvalued or undervalued. When price trades above VWAP, it indicates buyer dominance; below it, sellers are in control.

Value Area Concepts (VAH, VAL, POC)

• Value Area High (VAH): The upper boundary of the value area, where 70% of trading volume occurs. It often acts as resistance when price approaches from below.
• Value Area Low (VAL): The lower boundary of the value area, acting as support when price approaches from above.
• Point of Control (POC): The price level with the highest traded volume, serving as a magnet for price action.

Takeaways for Today

• Bullish Scenario: A move above 21,760 favors upside targets at 21,825 and 21,839.
• Bearish Scenario: A drop below 21,669 targets key support levels at 21,550 and 21,403.
• Trading Guidance: Use these levels to define entry and exit points, and always manage risk carefully.

Trade at your own risk. Visit ForexLive.com for additional views.

This article was written by Itai Levitan at www.forexlive.com.