Nasdaq 100 Key Levels to Watch in 2025: Insights on Price Targets and Market Trends

Essential Highlights

• In 2024, the Nasdaq 100 Index surged nearly 8% in Q2, propelled by robust investor enthusiasm for artificial intelligence and technology sectors.
• Recent declines in trading volume combined with a bearish divergence in the relative strength index (RSI) signal a softening in buying momentum.
• Watch for critical support zones at 19,500, 18,900, 18,400, and 16,974, which may cushion potential pullbacks.
• A bars overlay technique suggests a potential upside target near 22,000, based on price movements from late 2023 through early 2024.

The Nasdaq 100, heavily weighted toward technology companies, continues to break new ground in 2024, driven by Wall Street’s strong confidence in the AI revolution. This enthusiasm has fueled impressive gains throughout the second quarter.

Our technical analysis identifies pivotal price levels to monitor as the market navigates possible retracements in the third quarter.

Indicators Point to Moderating Buying Pressure

After rebounding between its 50-day and 200-day moving averages in mid-April, the index reached a record close recently. However, despite these highs, key indicators hint at waning upward momentum.

Trading volume, though still elevated compared to historic averages, has tapered off, possibly due to a shorter trading week. Additionally, while the index made a higher price peak, the RSI showed a lower high, indicating bearish divergence and easing buying activity.

Critical Support Levels to Monitor During Pullbacks

Investors should carefully watch these zones during periods of profit-taking or market corrections.

An initial retracement may test the 19,500 level, which recently served as a support area.

If the index falls below 19,500, it could find additional support near 18,900, a price range bolstered by a horizontal trendline and the rising 50-day moving average.

Further declines may bring the index down to approximately 18,400, aligned with a trendline that has shifted from resistance to support following previous all-time highs.

In a broader tech selloff scenario, the Nasdaq 100 might retreat to the April low of 16,974, situated just below the 200-day moving average, representing roughly a 16% drop from recent highs.

Long-Term Upside Price Projection

Using a bars overlay pattern that extends the October 2023 to March 2024 trend onto the April swing low, a potential long-term price target near 22,000 emerges for the Nasdaq 100.

All opinions and analyses on ZAMONA are for informational purposes only. Please review our warranty and liability disclaimer for details.

At the time of writing, the author holds no positions in the securities mentioned.

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