The Nasdaq has begun to exhibit signs of a trend reversal after successfully breaking through a bearish channel that has constrained price movements for a considerable time. This breakout serves as an early indicator that selling pressure is starting to wane, allowing for the possibility of a further rally. Additionally, the price has crossed above the neckline of a reversal pattern, which further strengthens the suggestion that an upward trend is taking shape. With the Bollinger Bands trending upward, bullish momentum is likely to persist in the near term.
This breakout is backed by an increase in trading volume, signifying a growing participation from buyers. If the Nasdaq can maintain its position above the breakout level and confirm new support, the potential for a rise to the next resistance level increases significantly. In this context, investors and traders should keep a close eye on the newly formed support areas and the movements of other indicators to validate the continuation of the bullish trend.
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The Commodity Channel Index (CCI) indicator is signaling positively after rising from the oversold region on the 15-minute chart, indicating that the potential for a trend reversal in the Nasdaq is becoming more probable. When the CCI exits the oversold zone, it often suggests that selling pressure has diminished and buying is beginning to dominate the market. This condition indicates that the Nasdaq could strengthen in the short term, testing the resistance at 20,583.
Technical Reference: buy as long as above 20,325
Potential Take Profit 1: 20,560
Potential Take Profit 2: 20,630
Potential Stop Loss 1: 20,395
Potential Stop Loss 2: 20,325
