Nasdaq Strategy - Thanksgiving Rally Expected, U.S. Stocks Likely to Rise

Fundamental Analysis: Last Friday, U.S. economic data showed mixed results, with manufacturing remaining relatively weak but the services sector continuing its strength, which remains the most important support for the U.S. economy. This has maintained market optimism about economic prospects, favoring the upward movement of U.S. stocks. Additionally, with various uncertainties clarified, the market will return to focusing on economic performance. Based on recent comments from officials and data, there is currently a high probability of a 25-basis-point rate cut by the Federal Reserve in December. As long as data and inflation do not deteriorate significantly, the Fed is likely to maintain a gradual easing stance, which will support the continued rally in U.S. stocks. Lastly, with Thanksgiving approaching, historical data shows that U.S. stocks typically perform strongly before and after Thanksgiving. If this year follows the traditional trend, U.S. stocks are likely to maintain a bullish stance leading up to the holiday.

Technical Analysis: On the hourly Nasdaq chart, the short-term trend shows a gradual upward movement, with moving averages in a bullish alignment, indicating a bullish pattern. However, the KD indicator shows a high-level dead cross, suggesting a potential pullback after an extended rally. It is advised not to short aggressively during the pullback in a bullish market. Instead, wait for a retracement to the support level of 20,805 to enter a light long position, with a target of 21,035 and a stop-loss at 20,700 if the level is breached.

Trading Suggestions:

Entry: Light long at the support level of 20,805 after a pullback.

Target: 21,035. Stop-loss: Exit if the price falls below 20,700.

Support level: 20,805. Resistance level: 21,035.

The above content is for reference only and does not represent the platform's stance. Stick to your strategy and manage risks accordingly.