To The Moon

In my years of trading and investing, I’ve learned one hard rule: take profit when you can—then it’s your money.

Let’s discuss the Nasdaq (NASDAQ 100).

Has it broken to new highs? Yes, the price is indeed bullish. However, technically, the price is nearing the top of an equidistant channel, which often represents a supply or resistance area.

While the overall trend remains up, the first critical “danger point” to watch is 20,650.

This was the previous all-time high, and price must stay above this level; otherwise, it could be deemed a “wash and rinse” (also known as a fake move).

A break below 20,650 would close the first gap (shown in green). There are two gaps in the Nasdaq—green and orange—created when Trump won the presidential election, causing the market to enter a state of euphoria.

“Closing the gap”

Means that the price moves back to fill this difference, trading at levels that cover the gap entirely. This can indicate:

• Market Sentiment Reversal: Initial enthusiasm may have subsided.

• Support or Resistance Levels: Gaps often serve as key levels attracting buying or selling activity.

• Potential Price Stabilization: It can suggest that the price has returned to a more balanced state.

Thus, closing the “green” gap (around 20,850) while staying above 20,650 is technically positive and healthy for the Nasdaq.

However, trading below 20,650 and closing the “orange” gap would not be viewed as healthy. Such a move could imply that buyer enthusiasm is waning and further corrections may follow.

Keep an eye on 20,650 and how prices react around these two gaps.

Looking to hedge an existing long position in the Nasdaq? Soc Gen offers short DLCs, which profit if the underlying asset moves down.

Short DLCs $Nasdaq 7xShortSG260324(NCTW.SI)$ $Nasdaq 5xShortSG251216(POQW.SI)$

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Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.