The Nasdaq index remains under significant bearish pressure, with the price action on the 1-hour time frame indicating a consistent dominance of sellers. The formation of a bearish channel illustrates that market control firmly lies with the sellers, while ZigZag patterns and the consistently declining Moving Average suggest a pattern of lower highs and lower lows. This situation highlights the inability of buyers to generate sufficient momentum to reverse the trend, thus the downward pressure continues to be the prevailing scenario.
From a technical perspective, this indicates that the primary trend remains firmly in the grasp of sellers. Any potential upward movements are likely to be temporary corrections as long as the price remains below the resistance of the bearish channel. Given the current market structure is heavily bearish and lacking strong reversal signals, the likelihood of further declines in the Nasdaq during this afternoon’s European session is increasing.
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The downward momentum is further supported by the MACD indicator, which remains in negative territory, indicating that bearish pressure is still intact without significant signs of weakening. On the 15-minute time frame, the bearish channel appears more defined, while the widening Bollinger Bands to the downside reflect increasing selling volatility. Given the alignment of these various technical signals, the Nasdaq is positioned to continue its decline and test a crucial support level around 24,340.
Technical References: sell while below 24,825
Potential Stop Loss 1: 24,745
Potential Stop Loss 2: 24,825
Potential Take Profit 1: 24,420
Potential Take Profit 2: 24,340
