Nasdaq bullish trend intact, with wedge breakout to dictate short-term direction
Nasdaq tests wedge breakout as momentum builds for $19,800 push
The Nasdaq Composite Index continues to move higher, maintaining its pattern of higher highs and higher lows over recent weeks.
However, price action on the 1-hour chart has developed within a rising wedge formation, which now appears close to a breakout. The narrowing structure reflects slowing momentum within an uptrend, and often precedes either a strong continuation or reversal.
Highlights
-Nasdaq posted a modest gain on Monday, extending its June advance
-Price is testing the top of a rising wedge pattern
-Breakout target is $19,800 while $19,538 and $19,400 are key downside
On Monday, the index extended its upward move, though the gain was modest. It climbed from last week’s close at $19,530 to reach an intraday high at $19,640. This new high slightly exceeded the previous week’s peak at $19,610. The session, however, ended with a close at $19,593, resulting in a 0.31% daily gain. This brings the Nasdaq’s performance to a 2.77% advance so far in June.
NASDAQ stock price dynamics (May - June 2025). Source: TradingView
Technically, the wedge breakout remains the focal point. If price breaks to the upside, bulls may aim to fill the sell-side imbalance between $19,650 and $19,800 left behind during the February correction. This zone, where price previously dropped sharply without balanced buying interest, is now being approached gradually, offering a potential magnet for buyers in the near term.
Nasdaq RSI on daily and 4-hour charts signals healthy momentum for further upside
Momentum indicators support the ongoing bullish structure. Both the daily and 4-hour RSI readings are well positioned above their respective moving averages and continue to track in bullish territory. Importantly, none of these indicators has reached overbought levels, suggesting room for further upside if price breaks out of the current consolidation.
If instead the wedge breaks to the downside, immediate support levels are clearly defined. The 20 EMA on the 1-hour chart is offering near-term support at $19,538. Below that, the 50 EMA around $19,400 could act as the next defense level for buyers. Any drop through these supports may invalidate the bullish structure and shift focus to a deeper retracement.
For now, the market awaits confirmation. A breakout above the wedge coupled with renewed buying interest could position the Nasdaq for a move toward the $19,800 level. But if support at $19,538 fails, sellers may regain short-term control. Price behavior at the wedge boundary will determine the next phase of movement in the index.
NASDAQ 100 (NDX) is an index of U.S. and non-U.S. technology companies based on weighted average stock prices. The index basket includes 100 companies, excluding the financial sector.
