The Nasdaq has exhibited signs of a trend reversal after successfully breaking through a bearish channel that had constrained its price movements for an extended period. This breakout acts as an early signal that selling pressure may be waning, paving the way for a potential rally. Additionally, the price has surpassed the neckline of a reversal pattern, further bolstering the indication that an upward trend is beginning to take shape. With the Bollinger Bands starting to point upward, the bullish momentum could very well continue in the near future.
This breakout is supported by an increase in trading volume, indicating a growing participation from buyers. If the Nasdaq can maintain its position above the breakout level and confirm new support, the likelihood of a rise to the next resistance level increases significantly. In this scenario, investors and traders should closely monitor the newly formed support areas and other indicator movements to confirm the sustainability of the bullish trend.
Recommended
Recommended
Recommended
Recommended
The Commodity Channel Index (CCI) is signaling positively as it moves up from the oversold territory on the 15-minute chart, indicating that the potential for a trend reversal in the Nasdaq is increasing. When the CCI exits the oversold zone, it often signifies that selling pressure has decreased and buying is beginning to dominate the market. This situation suggests that the Nasdaq may strengthen in the short term, testing the resistance at 20,518.
Technical References: buy while above 20,180
Potential Take Profit 1: 20,463
Potential Take Profit 2: 20,518
Potential Stop Loss 1: 20,233
Potential Stop Loss 2: 20,180
