Nasdaq 100 short setup targets 26,850 at roughly 3:1 reward-risk

The Nasdaq 100 dropped from 30,177 to 26,370 in just over a week, according to easyMarkets in a TradingView chart for US Tech (NDQ) / US Dollar, symbol EASYMARKETS:NDQUSD. The rebound that followed took the index straight back to 28,000-28,250, according to easyMarkets.

easyMarkets said the 28,000-28,250 area supported the index on 30 October and 3 November. After that support broke, the area became the most obvious place for sellers to return, easyMarkets said.

“Old support turning into resistance is one of the most reliable patterns in price action,” easyMarkets wrote. easyMarkets said the prior rally peaked at 28,129, right inside the zone, while the next session had already struggled to push higher.

What does the rejection signal about the trend?

On the daily chart, easyMarkets identified lower highs at the October high and the early-November high. easyMarkets said the larger trend had shifted down and that a rejection in the zone would add another lower high to the sequence.

How is the four-hour short defined?

The proposed direction is short, with an entry at 28,050 inside the supply and “flip” zone, easyMarkets said. The stop loss sits at 28,420, above the zone and the prior session's high, while take profit is set at 26,850.

easyMarkets put the risk-to-reward ratio at roughly 1:3. easyMarkets labeled 26,850 as the top of demand, gave the demand range as 26,370-26,800 and also described the target as last week's low.

What would invalidate the bearish view?

easyMarkets said a four-hour close above 28,250 that holds would open the way to major supply at 28,850-29,000. A move back above 29,000 would cancel the bearish view altogether, according to easyMarkets.

What could disrupt the setup?

The VIX was around 20 and the US 2-year yield was rising, easyMarkets said, which easyMarkets read as evidence that risk appetite remained fragile. Big tech earnings reactions and US inflation data could quickly change the tone, so easyMarkets advised managing size accordingly.

How does easyMarkets cross-check the setup?

Before placing a trade, easyMarkets said it liked a second opinion. easyMarkets runs the setup through Dealsize.ai to cross-check technical structure with AI analysis and to review similar trades in the author's own trading journal.

easyMarkets framed the broader debate as a “dead cat bounce” versus the start of a recovery. easyMarkets invited readers to share their views in the comments.

What did easyMarkets disclose about risk?

easyMarkets labeled the content informational and educational and said it did not constitute investment advice. easyMarkets said the analysis did not consider the financial situation, needs or objectives of any specific individual, and that references to past performance are not reliable indicators of future results.

easyMarkets' separate warning said 68% of retail investor accounts lose money when trading CFDs with the provider. easyMarkets advised readers to consider whether they could afford the high risk of losing money and referred them to the full risk disclaimer on its website.

The bearish setup stays conditional on a failure to post a sustained four-hour close above 28,250, according to easyMarkets. Under the published plan, 26,850 is the target and 29,000 is the level that would void the view, while big tech earnings reactions and US inflation data could quickly change market tone.