25.12.22 NASDAQ Technical AnalysisNASDAQ Technical Analysis: Dec 22, 2025
Welcome to acid trade. I am acid.
NASDAQ has demonstrated a significant technical recovery. In Friday’s session, the index successfully broke above and closed over the 20-day Moving Average (MA), a key trend indicator. During the current Monday Asian session, bullish momentum persists. Notably, as seen in the Red Box, the price has reclaimed the Dec 15th high and is now testing the median of the previous large bearish candle. This move suggests that the upside remains open toward the upper boundary of the Orange Box, with bulls currently maintaining control.
Following Friday's rally, an Ascending Triangle pattern formed with resistance established at the 25,380 level. Despite a brief 0.55% retracement, the market consistently printed higher lows and broke out of the pattern’s upper resistance just before the close. Monday’s pre-market session opened with a bullish gap (highlighted in the Blue Box). Based on this breakout, the immediate price target is projected up to 25,520.
While the prevailing momentum is bullish, I am cautious about "FOMO-driven" volatility following this extended rally. To avoid the risk of a sharp corrective flush-out, I will refrain from entering new long positions at these levels.
Instead, I am monitoring two specific Short (Sell) Entry scenarios:
Gap-Fill Scenario: A breakdown below the short-term trendline and the 25,426 level (today’s pre-market low). This trigger suggests the market will move to fill the morning gap.
Structural Reversal: A breach of the primary ascending trendline (originating Dec 18th) and a move below 25,251. This would confirm a breakdown of the Ascending Triangle’s base, signaling a formal trend reversal.
Conclusion
NASDAQ is showing strong bullish intent after securing a position above the 20-day MA and breaking out of an intraday Ascending Triangle. While the technical target sits at 25,520, the potential for a "FOMO" exhaustion dip remains high, warranting a cautious approach to long positions. Our strategy shifts to a defensive or short-bias only if the 25,426 gap-fill trigger or the 25,251 structural support level is breached. Prioritize capital preservation over chasing extended moves in this high-volatility environment.
