The Nasdaq exhibits a growing bearish potential following the breakdown of a previous bullish channel that had dominated price movements. Breaking below the lower boundary of the channel suggests a waning strength in the ongoing bullish trend, heightening the likelihood of a directional reversal. This pattern often leads to price corrections, signaling traders to remain alert for further declines, especially during volatile trading sessions.
Moreover, technical indicators such as Moving Average (MA) and Moving Average Convergence Divergence (MACD) further bolster the bearish outlook. The MA indicates that price action has transitioned below the MA line, highlighting a clear bearish trend. Meanwhile, the MACD shows a downward crossover between the MACD line and the signal line, confirming that the downward momentum is currently active.
Recommended
Recommended
Recommended
Recommended
On the 15-minute chart, the Nasdaq presents a robust potential for decline as both Moving Average (MA) and Commodity Channel Index (CCI) yield bearish signals. The MA line indicates a downward trajectory, with prices consistently under the MA, suggesting amplifying selling pressure. Additionally, the CCI is in the overbought zone and starting to decline, indicating a reduction in bullish momentum, positioning the market for a potential correction. The convergence of these two indicators suggests that Nasdaq could continue to drop, testing the support level of 21,620.
Technical References: sell while below 21,825
Potential Stop Loss 1: 21,790
Potential Stop Loss 2: 21,825
Potential Take Profit 1: 21,660
Potential Take Profit 2: 21,620
