The Nasdaq exhibits a strong bounce potential after reversing direction from the lower boundary of the Bollinger Bands, a level that frequently serves as a crucial support point in price movements. When the price touches or dips below the lower Bollinger Band, it typically signifies an oversold condition, indicating that the market has exceeded the selling limits and is likely to reverse.
The Stochastic indicator, which is also situated in the oversold zone, reinforces this signal, as this condition often suggests that the downward momentum has peaked, thereby creating opportunities for a bounce.
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The Commodity Channel Index (CCI) is displaying positive signals after rising from the oversold region on a 15-minute chart, indicating that the chances for a trend reversal in the Nasdaq are increasing. When the CCI exits the oversold zone, it frequently suggests that selling pressure is diminishing and buying is beginning to take over the market. This situation presents indicators that the Nasdaq may strengthen in the short term, testing the resistance at 20,034.
Technical Reference: buy when above 19,598
Potential Take Profit 1: 19,958
Potential Take Profit 2: 20,034
Potential Stop Loss 1: 19,688
Potential Stop Loss 2: 19,598
