The Nasdaq appears to be facing downward pressure after its inability to breach the recent highs indicated by a double top pattern observed in the price chart. The rejection in this area suggests that the bullish momentum has faded, intensifying the bearish sentiment.
Moreover, the price is hovering close to the upper boundary of the Bollinger Bands, a position that frequently signifies overbought conditions and raises the likelihood of a price reversal. This combination of technical patterns delivers a clear signal that the Nasdaq may decline in the near future, especially if it drops further below the critical support level.
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Supporting this analysis, the hourly chart indicates potential for a downward movement as well. The 15-minute chart also highlights selling opportunities, with the Stochastic indicator declining from the overbought zone, confirming a sell signal, while the price remains entrenched within a bearish channel. If this scenario materializes, the Nasdaq could test the support level at 21,300.
Technical Reference: sell if below 21,627
Potential Stop Loss 1: 21,550
Potential Stop Loss 2: 21,625
Potential Take Profit 1: 21,213
Potential Take Profit 2: 21,150
