The Nasdaq index continues to exhibit increasingly strong bearish signals as it breaches the lower boundary of the Bollinger Bands, suggesting that selling pressure is prevalent in the market. This breakout below a key support level indicates that buyers are becoming more aggressive, raising the possibility for the Nasdaq to decline further towards the subsequent support level. The breach is also accompanied by a rise in trading volume, which further solidifies the bearish scenario.
In addition, the Stochastic indicator’s decline from the overbought territory further confirms that bearish momentum is in play. The downward movement of the red and blue lines suggests that selling pressure remains dominant, and the potential for a trend reversal appears limited.
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Currently, the Nasdaq is under pressure within a bearish channel on the 15-minute timeframe, indicating the continual dominance of sellers pushing prices lower. The price movement beneath the resistance channel line further strengthens the view that the market remains in a downward trend, with further declines likely as it approaches support at 19,870.
Technical Reference: Sell while below 20,410
Potential Stop Loss 1: 20,300
Potential Stop Loss 2: 20,410
Potential Take Profit 1: 19,945
Potential Take Profit 2: 19,870
