The Nasdaq index experienced significant downward pressure during the US session last night after prices breached the lower boundary of the bullish channel, indicating a loss of upward momentum that had previously supported the index. The sharp decline has created new lows, suggesting an increasing strength of sellers and a trend shift into the bearish zone.
The price structure on the 1-hour chart is now showing a clearer downward tendency, reinforced by rising profit-taking activity and market concerns regarding the growth prospects of the technology sector, which further dampens investor buying interest. From a technical perspective, the downward sloping Moving Average (MA) confirms the weakening of the short-term trend, while the ZigZag indicator consistently produces new lows, indicating that selling pressure remains intense.
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The combination of these signals reinforces the potential for continued decline, especially if prices fail to return above the recently breached support zone. Additionally, on the 15-minute chart, the flattening MA and the CCI moving out of the overbought area further emphasize the chances for a short-term correction still remain. Should selling pressure persist, the Nasdaq could continue to weaken, potentially testing the support area around 24,613 in the near term.
Technical Reference: sell while below 25,022
Potential Stop Loss 1: 24,955
Potential Stop Loss 2: 25,022
Potential Take Profit 1: 24,697
Potential Take Profit 2: 24,613
