Market Analysis and Resistance Level

The Nasdaq 100 is struggling to break through the resistance level at 25,870. It is currently close to its 50-day moving average, indicating some uncertainty in the market. If the index rises above 25,870 points, it could signal the start of a new upward trend. Meanwhile, the low of 25,085 points from earlier this month serves as short-term support. If this support level fails, the index could drop further toward the ascending trend line, which has been in place since August 2025, located between 24,640 and 24,500 points. The FXStreet Insights Team gathers key market observations from experts, along with additional insights from internal and external analysts. Currently, the Nasdaq 100 is caught between important levels, showing a period of indecision in the market. With the index struggling at the resistance of 25,870, it acts as a barrier for now. The lack of a clear trend suggests that prices are stabilizing after rising in late 2025.

Market Strategies and Trading Options

This sideways movement comes as we analyze mixed Q4 2025 earnings from several tech giants. Recent inflation data from last week was slightly higher than expected at an annualized 3.3%, creating some uncertainty about the Federal Reserve’s next actions. The CBOE Volatility Index (VIX) reflects this uncertainty, staying around 18, which is higher than the lows seen in the fourth quarter of 2025. In this climate, selling option premiums on the Nasdaq 100 might be a smart strategy for the upcoming weeks. An iron condor, with short strikes set beyond the resistance of 25,870 and the support of 25,085, could benefit if the index stays within this range. This strategy profits from the passage of time as long as the market avoids a big breakout. Alternatively, for those expecting a breakout ahead of next week’s FOMC meeting, buying a straddle can be effective. This strategy involves purchasing both a call and a put option at the same strike price and expiration date, betting on a significant price move in either direction when the market finally trends one way. For traders who lean bullish but want to manage risk, a bull call spread targeting a rise above 25,870 is a defined-risk approach. We experienced a similar period of consolidation back in August 2025 before the market moved higher. This strategy allows for participation in a potential rally while limiting the maximum loss if the resistance holds. Watch the immediate support level at 25,085 closely. If this point is decisively broken, it would indicate that the current indecision is likely resolving downward. In that case, we could see a deeper pullback toward the main ascending trend line around 24,640/24,500. Create your live VT Markets account and start trading now.

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