Nasdaq Futures Today by TradeCompass

NASDAQ Futures Analysis & Price Prediction – TradeCompass for February 5, 2025

Structured Approach to NASDAQ Futures Trading

For those new to the TradeCompass, it serves as a structured NASDAQ futures analysis and a price prediction tool, identifying key price levels where traders may see buying, selling, absorption, rejection, or continuation. The TradeCompass is not simply saying, “If price rises, it may keep rising,” or “If price drops, it may keep dropping.” Instead, it applies:

• Volume Profile Analysis
• VWAP (Volume Weighted Average Price) and Deviations
• Institutional Order Flow Considerations
• Key Liquidity Levels & Partial Profit Targets

This methodology pinpoints critical reaction zones, allowing traders to scale out of positions rather than relying on an all-or-nothing approach. The key advantage? Better trade management and avoiding the emotional trap of chasing a move too late or holding a trade too long expecting a home run.

Additionally, the TradeCompass is an orientation tool, not a rigid system. Some traders use it for confirmation alongside their existing strategies, while others might fade price levels (short at resistance, long at support). It is flexible and adaptable to different trading styles.

Current Market Position for Today’s NASDAQ Futures Analysis

• NASDAQ Futures (NQ) is currently trading at 21,504.
• We are already below today’s bearish threshold of 21,532, meaning the bearish stance is already active.
• Price may still rise to retest this threshold, creating a potential shorting opportunity before further downside.
• A higher retest zone sits at 21,542, which aligns just under yesterday’s Value Area Low (VAL)—a historically significant liquidity level.

While the market structure is bearish, traders should watch for a potential retracement toward these key levels before making a move. If price does retest 21,532–21,542, the TradeCompass framework suggests considering a short position at your discretion, especially if order flow confirms weak buying interest or aggressive selling.

Bearish Threshold & NASDAQ Price Prediction for Short Trades

• Bearish bias remains active below: 21,532
• Potential short re-entry points if price retests higher:
  • 21,529 → A key technical level from previous liquidity movements.
  • 21,542 → Located below yesterday’s Value Area Low (VAL), a resistance zone.

Bearish Profit Targets (Key Levels for Partial Profit-Taking)

💡 Traders using 1 E-mini NQ contract may consider trading 10 Micro NQ (MNQ) contracts for better flexibility in scaling out.

1️⃣ 21,471 → Just above the 1st lower standard deviation of VWAP from yesterday.2️⃣ 21,421 → Aligned with the Value Area Low from two days ago and yesterday’s VWAP low.3️⃣ 21,371 → An additional key liquidity level where price may slow down or bounce.4️⃣ 21,305 → VWAP level from two days ago, a potential deep bearish target for extended downside.

📌 What to Watch: If NASDAQ futures remain below 21,532, the bearish trend remains intact. A deeper move toward 21,421 or even 21,305 could materialize, but these are structured targets, not guarantees—they are reaction zones where traders should watch price action closely.

Bullish Threshold & NASDAQ Futures Price Prediction for Long Trades

• Bullish only above: 21,595
• However, be cautious, as major earnings disappointments from Google (-8%) and AMD (-10%) may weigh on overall market sentiment.

While the TradeCompass remains unbiased and provides both bullish and bearish levels, bearish winds from these earnings reports suggest upside could be limited unless strong buying appears.

Bullish Profit Targets (Key Levels for Partial Profit-Taking)

1️⃣ 21,615 → Just below the Value Area High at the time of analysis.2️⃣ 21,644 → Below yesterday’s POC (Point of Control), near the semi-round number 21,650—a known liquidity area.3️⃣ 21,683 → A notable liquidity pool where traders may step in.4️⃣ 21,725 → A higher bullish target for an extended upside move.

📌 What to Watch: If NASDAQ futures break above 21,595 with strong volume and delta confirmation, the bullish case strengthens. However, given the broader market context, caution is warranted—partial profits should be prioritized if the price reaches any of these targets.

Key Takeaways from Today’s NASDAQ Futures Analysis

✅ Bearish trend is active—price is already below the bearish threshold of 21,532.✅ A potential short opportunity may emerge if price retests 21,532–21,542 before resuming lower.✅ Bearish profit targets: 21,471, 21,421, 21,371, and 21,305.✅ Bullish only above 21,595, but earnings weakness in the tech sector may cap upside potential.✅ Bullish profit targets: 21,615, 21,644, 21,683, and 21,725.

🎯 Final Thoughts:The TradeCompass is not a crystal ball—it provides a structured, volume-based framework for identifying key levels where traders might see momentum shifts, absorption, or profit-taking. These are reaction zones, not guarantees, so watch price action at these levels and adjust accordingly.

ForTrader Education: Understanding Key Trading Concepts

📖 Value Area High (VAH):The highest price level within the 70% volume distribution from the previous session. If price breaks above VAH with strong volume, it suggests bullish momentum; if rejected, it can indicate a reversal.

📖 Point of Control (POC):The price level where the most volume traded in the previous session. This level often acts as strong support or resistance depending on the price reaction around it.

📖 VWAP (Volume Weighted Average Price):A benchmark price used by institutions. Price trading above VWAP suggests bullish sentiment, while price below VWAP suggests bearish control.

💡 Why It Matters?Institutional traders and algorithms often trade around these levels, making them critical for identifying trade setups in NASDAQ futures analysis.

Final Word: NASDAQ Futures Analysis & TradeCompass Recap

Today’s NASDAQ price prediction within the TradeCompass framework is bearish below 21,532, with key downside levels to watch. However, if price reverses and breaks 21,595, there is room for a bullish scenario, though market-wide headwinds could limit upside momentum.

📊 Stay disciplined, use partial profit-taking, and let price action confirm direction at these critical levels.

Trade wisely and visit ForexLive.com for additional views! 🚀

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