Is Nasdaq Forming a Bear Trap?Nasdaq 100 SPOTCFI:US100CFIThe Nasdaq Index is currently trading near a pivotal price zone that could determine its next major move. This area may serve as the launching point for a strong bullish wave if key technical conditions are met. So, what supports this scenario? Key observations from the chart The Nasdaq broke below a key support level near 29,000 (Low 1 on the chart). It then extended its decline and broke another important support level near 28,870 (Low 2). From a technical perspective, the index was expected to continue falling after breaking these support levels. Instead, buyers quickly regained control, allowing prices to recover sharply. The rebound has so far stalled near a previous resistance area, represented by High 3 on the chart, around 29,900. Is a Bear Trap Developing? The Nasdaq may be forming a bear trap, a bullish technical pattern that occurs when a downside breakout fails and sellers become trapped as prices reverse higher. Confirmation of this scenario would require the index to break above and establish sustained trading above the 29,900 resistance level. This area is particularly important because it also coincides with the 200-period moving average, adding further technical significance. As a result, this level will be closely monitored in the coming sessions. Fundamental Support The improving technical outlook comes as U.S. equities posted strong gains on Thursday, led by semiconductor stocks. The Nasdaq advanced approximately 1.8%, closing near 29,700. Meanwhile, OpenAI unveiled its latest artificial intelligence model, GPT-5.6, while reports indicated that Meta is preparing to begin production of its new AI chips in September. These developments have further strengthened optimism toward the technology sector.