The Nasdaq is starting to exhibit clear signs of increasing sellers dominance, with price movements now forming a distinct bearish pattern on the 1-hour chart. The established bearish channel indicates a consistent downward trajectory, accompanied by a pattern of Lower Highs and Lower Lows (LH-LL), which reinforces the notion that selling pressure remains active. This scenario reflects a shift in market sentiment from optimism to caution, where buyers are beginning to lose control over price direction. The declining direction of the Moving Average (MA) further solidifies the signal that the short-term trend is shifting to a bearish stance, opening up possibilities for the Nasdaq to continue its decline during the European session this afternoon.
From a technical perspective, the ZigZag indicator is displaying a descending structure, and the Commodity Channel Index (CCI) is residing in the overbought area, which serves as additional confirmation for the prospect of further corrections. Selling pressure is expected to persist as long as prices remain below the bearish channel’s resistance line. If this pressure continues, the Nasdaq may test the next support level before any significant signs of recovery manifest. However, if a rebound occurs from the lower area, any increases are likely to be only temporary technical adjustments before the downward trend resumes its dominance.
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Currently, the Nasdaq price is constrained within the resistance of the Bollinger Bands (BB), indicating that the upward momentum is starting to lose strength. The state of the Commodity Channel Index (CCI) being in the overbought territory amplifies the likelihood of an impending price correction shortly. Selling pressure could intensify if the price fails to break through the mentioned resistance, with a potential decline toward the support level around 25,170 before a possible technical rebound re-emerges.
Technical Reference: sell below 25,545
Potential Take Profit 1: 25,227
Potential Take Profit 2: 25,170
Potential Stop Loss 1: 25,487
Potential Stop Loss 2: 25,545
