The Nasdaq is experiencing increasing technical pressure leaning towards bearish territory as prices persist within a descending channel. The ongoing selling pressure is further confirmed by a declining moving average (MA), indicating that market momentum is shifting back towards the sellers. Any short-term price increases are now perceived merely as pullbacks rather than signs of trend reversal, thereby maintaining a dominant bearish bias in the current climate.
Additional signs of weakness emerge from the CCI indicator, which indicates an overbought condition, suggesting a growing likelihood of a downward correction. When prices are situated within a bearish channel, with a declining MA, and the CCI indicating overbought status, this combination often serves as an initial trigger for continued declines. With solid technical support in place, the Nasdaq is positioned to weaken further towards the nearest support levels, paving the way for continued dominance by sellers in the near term.
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The Nasdaq is exhibiting short-term bearish pressure after prices have dropped from the resistance area of the Bollinger Bands, signaling that sellers are beginning to take control. This pressure is further reinforced by the MACD, which has started to enter negative territory on the 15-minute timeframe, confirming the weakening of buying momentum. Given these technical signals, the Nasdaq has the potential to continue its decline and test the support level at 24,765 shortly.
Technical References: sell while below 25,095
Potential Stop Loss 1: 25,040
Potential Stop Loss 2: 25,095
Potential Take Profit 1: 24,830
Potential Take Profit 2: 24,765
