In the 1-hour timeframe, the Nasdaq is exhibiting signs of losing momentum following a previous rally, as the failure of prices to establish a new high serves as an early indicator of weakening bull dominance. This scenario opens the door for correction, especially as the price structure begins exhibiting a gradual decline. The pattern from the ZigZag indicator is trending downward, while the Moving Average (MA) line is beginning to curve downwards, suggesting a shift in direction that warrants attention.
Corrective pressures are likely to persist during the US session tonight, bolstered by the MACD indicator that indicates diminishing momentum. The shrinking histogram and the MACD line declining from the positive zone affirm the loss of buying strength. Should selling pressures continue to intensify and prices breach the nearest minor support level, the Nasdaq faces a heightened risk of further declines in the near future. As long as no new technical or fundamental triggers emerge during the US session, this corrective trend remains likely to prevail.
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In the 15-minute timeframe, the Nasdaq is beginning to form a bearish channel that indicates a downward trend in the short term. The price structure moving within this declining channel signals a dominance of selling pressure, especially as the Stochastic indicator sits in the overbought territory and begins to reverse direction. This situation opens up the possibility for deeper price correction to test support at 22,792.
Technical Reference: sell while below 23,000
Potential Stop Loss 1: 22,960
Potential Stop Loss 2: 23,000
Potential Take Profit 1: 22,835
Potential Take Profit 2: 22,792
