The Nasdaq index is displaying signs of a potential bearish trend after prices were rejected from the upper boundary of the Bollinger Bands. This rejection indicates that a strong resistance level has successfully halted the upward movement, creating an opportunity for a deeper correction.
The Stochastic indicator being in the overbought zone further reinforces this bearish signal. This overbought condition suggests that prices have reached a saturation point for buying, leading to an expectation that selling pressure might increase soon.
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In agreement with the one-hour chart analysis, the 15-minute chart also indicates a potential downward move as the price currently resides within a bearish channel and the moving average indicator shows a downward trend, adding to the selling pressure. If this scenario unfolds, the Nasdaq could potentially drop to test the support level at 20,760.
Technical Reference: sell while below 21,245
Potential Stop Loss 1: 21,170
Potential Stop Loss 2: 21,245
Potential Take Profit 1: 20,845
Potential Take Profit 2: 20,760
