The Nasdaq, observed on a 1-hour time frame, has shown a notable shift in price structure following the breach of a previously supporting bullish channel. This downward movement has resulted in the formation of a new lower low, accompanied by a pullback to the break area which is now acting as dynamic resistance. This scenario indicates increasing selling pressure in the market, as the descending ZigZag pattern and the declining direction of the Moving Average (MA) further strengthen the potential for a short-term bearish reversal. The situation reveals that buyers are starting to lose their grip, creating opportunities for sellers to seize price momentum.
From a momentum indicator perspective, the CCI is currently situated in overbought territory following a pullback, underscoring the likelihood of a deeper correction. As long as prices fail to reclaim the newly established resistance area, the prospect for continued weakening remains significant. With this combination of predominantly bearish technical signals, the Nasdaq may extend its downward pressure towards the nearest support level if selling dynamics remain robust during tonight’s US session.
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Meanwhile, on the 15-minute time frame, the formation of a bearish channel further consolidates the understanding that market sentiment is still dominated by sellers . The Stochastic indicator, residing in the overbought zone, suggests that upward momentum is becoming restricted, thus opening up possibilities for a price correction in the near future. Supported by technical signals aligning with this outlook, the Nasdaq is likely to experience further declines in tonight’s US session, with the next target drop anticipated towards the support level at 25,400.
Technical Reference: sell below 25,670
Potential Take Profit 1: 25,460
Potential Take Profit 2: 25,400
Potential Stop Loss 1: 25,610
Potential Stop Loss 2: 25,670
