Bearish Channel and Overbought Stochastic, Nasdaq at Risk of Further Decline

The Nasdaq continues to face selling pressure after failing to break through the resistance at the upper boundary of the bearish channel established since late December. The Stochastic indicator is currently in the overbought zone, suggesting a potential decline in the near future.

Advertisements

Regulated

FBS

This company is verified and recommended for traders.

FBS: Cyprus 17 years MT4/MT5 Full Licence
Recommended

Regulated

OctaFX

OctaFX: Cyprus 15 years MT4/MT5 Full Licence
Recommended

Regulated

FXCM

This company is verified and recommended for traders.

FXCM: Australia 27 years MT4/MT5 Full Licence
Recommended

Regulated

MIFX MONEX

MIFX MONEX: Indonesia 26 years MT4/MT5 Full Licence
Recommended

According to the one-hour chart analysis, the 15-minute chart also presents a downward opportunity as the Stochastic indicator decreases from the overbought area, and the MACD remaining in negative territory confirms the sell signal; additionally, prices are positioned within the bearish channel. If this scenario plays out, the Nasdaq may test the support level of 21,052.

Technical Reference: Sell while below 21,425
Potential Stop Loss 1: 21,368
Potential Stop Loss 2: 21,425
Potential Take Profit 1: 21,118
Potential Take Profit 2: 21,052