Implied volatility gives daily estimates for support and resistance levels for the US500, NAS100, and GER40 indices. Right now, those levels are set at 6520 and 6390 for US500, 24000 and 23480 for NAS100, and 24700 and 24200 for GER40. These values reflect 1-month implied volatility, providing flexible market-based reference points. When you use them with tools like pivot points and Fibonacci retracements, they become even more useful.

Using Implied Volatility

Implied volatility helps you create an objective and data-driven price range. This works well with other technical analysis methods and can help you find potential entry, take-profit, or stop-loss points. Today, we see important implied volatility ranges for the next few weeks that traders should watch. For the US500, the expected trading range lies between 6390 and 6520. This comes as the market feels jittery after the July 2025 CPI report showed a 2.8% increase, slightly higher than expected, stirring up uncertainty about what the Federal Reserve will do next. The NAS100 has a tighter range of 23480 to the key resistance level of 24000. This narrowing of expected volatility follows a period when major tech companies reported mixed earnings in late July 2025. Since the index has risen over 20% this year, traders might choose options to bet that the index will remain within this range and protect recent gains. For the GER40, the implied range of 24200 to 24700 reflects concerns in the European market. Germany’s latest manufacturing PMI dropped to 48.5, signaling a contraction and raising fears of economic slowdown. This makes the 24700 resistance level especially important to watch.

Historical Context and Practical Application

We recall a similar market situation in the fall of 2023, when indices remained steady for weeks while conflicting economic data was processed before a significant breakout. Using these volatility levels can help us define our risk now. For example, if the US500 breaks below the 6390 support, it might signal a deeper correction ahead. A practical approach is to pair these objective levels with our own analysis. If the NAS100 nears the 23480 support and it lines up with a key technical indicator like the 50-day moving average, it becomes a more confident opportunity for a bullish trade. These volatility ranges serve as a data-driven guide to navigate the market’s current uncertainty. Create your live VT Markets account and start trading now.

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