The Nasdaq is experiencing intensified selling pressure during the US session this evening after prices broke through the lower boundary of the bullish channel that had been supporting the upward trend. This movement serves as an early signal of a potential shift from a bullish phase to a bearish phase, indicating a loss of the positive momentum that previously propelled the index to new highs. The selling pressure has been exacerbated by rising market concerns regarding the growth prospects of the technology sector, which has recently come back into focus for investors.
The price structure on the 1-hour chart now reveals a more defined weakening pattern, characterized by consecutive lower lows and lower highs. Technical indicators such as the Moving Average (MA) are starting to decline, reinforcing the signal that the short-term trend has shifted towards negativity. Concurrently, the ZigZag indicator continues to create new lows, providing further confirmation that the seller dominance remains prevalent in market movements, while any attempts at rebound thus far have merely presented opportunities for subsequent selling pressure.
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On the 15-minute time frame, signs of weakness are increasingly visible, with the MA flattening out and the CCI indicator dropping from the overbought zone, indicating that there is room for further bearish pressure to continue. As long as prices remain below the breached support area, the likelihood of a deeper correction remains wide open. Should the selling pressure persist, the Nasdaq may continue its decline toward the next support area around 24,160, further solidifying a shift in market sentiment towards bearish in the short term.
Technical Reference: sell while below 24,862
Potential Stop Loss 1: 24,764
Potential Stop Loss 2: 24,862
Potential Take Profit 1: 24,262
Potential Take Profit 2: 24,160
