Hello, this is Nasdaq Alpha.
After a strong rebound this week, what kind of price action can we expect from the market next week? Even if the market attempts a further recovery after experiencing a slight pullback during the middle of the week (Wednesday and Thursday), entering a consolidation phase following a strong rally would be completely normal.
In a mixed market where it is difficult to predict the exact direction, relying on clear reference levels is much more effective than getting lost in complex analysis.
- On an Upside Breakout: Use the upper gray line on the chart as a key reference. Maintain a bullish outlook for continued upside once the price breaks through and establishes support above it.
- On a Downside Breakdown: Monitor whether the price breaches the lower gray line, and prepare for risk management and a corrective phase.
- During Sideways Consolidation: With a bullish ‘Three-Inside-Up’ pattern forming on the weekly chart, keep the possibility of range-bound movement open between the upper and lower boundary lines.
Until a clear market direction is established, please stay flexible and manage your trades based on the support and resistance lines provided.
Personally, I am leaning slightly more toward a sideways or consolidation phase at this current level.
Wishing everyone continued success next week through rigorous analysis and precise risk management. Good luck and let’s make it big!
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