Nasdaq Composite Index eyes third straight weekly gain amid high volume surge
Nasdaq eyes third weekly gain as $19,800 resistance comes into focus
The Nasdaq Composite Index [IXIC] is setting up for a potential third consecutive weekly upclose after shaking off a midweek decline that briefly threatened to snap the bullish tone.
Initially, the week began strong. The index opened higher and pushed upward for three straight days, backed by consistent increases in trading volume. That steady climb, however, met a key price reaction zone midweek as the index filled the sell-side price inefficiency left behind in late February at the $19,800 level.
Highlights
-Nasdaq rebounded from mid-week selloff with 2025's largest daily volume surge
-Technical support holds firm at $19,550–$19,650 validating rising wedge structure
-A break above $19,800 today could seal Nasdaq’s third straight green weekly close
Once that inefficiency was filled, the index posted a sharp 1.15% intraday decline. The drop came on volume that exceeded the previous three bullish sessions, wiping out most of the week’s gains and briefly breaking confidence around the rising wedge pattern that has been forming on the daily chart. The midweek selloff brought price action dangerously close to a breakout below the lower trendline of the wedge structure.
NASDAQ price dynamics (May - June 2025). Source: TradingView
But Thursday flipped the script. The Nasdaq printed a 0.43% gain after bouncing from an intraday low of $19,555, which perfectly aligned with the lower trendline of the rising wedge. More importantly, the bounce was supported by the largest single-day volume surge recorded in 2025, a signal that institutions stepped in to absorb the sell pressure and drive price back up.
The rebound took the index to an intraday high of $19,690, creating a clean higher low and confirming short-term bullish intent. From a technical standpoint, the 20 EMA on the hourly chart has now stepped in as immediate support around $19,650, while the 50 EMA is reinforcing the zone at $19,553. These levels align with the wedge structure, offering a near-term cushion for upward continuation.
Fundamentally, the buying interest seen on Thursday indicates strong positioning ahead of the upcoming preliminary reading of the U.S. Consumer Sentiment Index. The RSI on both the hourly and daily charts has moved firmly into bullish territory, suggesting there is more room for upside.
A push above the $19,800 mark today would invalidate the midweek selloff and open the path toward fresh highs for June. If that plays out, this week will close as the third straight green week for the Nasdaq Composite Index, further strengthening the short-term bullish structure.
Nasdaq erased early CPI-driven gains after hitting $19,800 and faced heavy institutional selling. High bearish volume and wedge rejection signalled growing downside pressure near $19,550.
