The Nasdaq index on the 1-hour timeframe is indicating weakness as it breaks below the lower boundary of the bullish channel that has defined its movements since early June. This sharp decline confirms a breaklow in the upward structure, accompanied by weakening momentum, which is evident from the MACD histogram deepening in negative territory. The inability of prices to maintain position within the channel signals a loss of control by the buyers and creates space for seller dominance in the near term.
Currently, despite a slight technical rebound from a temporary support level, selling pressure remains predominant until prices can reclaim the area above the channel. If this pressure persists and prices fail to recover swiftly, the Nasdaq could continue its correction toward the next support level.
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On the 15-minute timeframe, the Nasdaq is starting to form a bearish channel, indicating a potential continuation of selling pressure in the short term. The price action is increasingly marking lower highs and lower lows, reinforcing this downward structure, while the limited rebounds exhibit weak buying momentum. As long as prices stay below the upper line of the channel and there are no strong reversal signals, the likelihood of continued decline remains open, targeting the next support level at 21,488.
Technical Reference: sell when below 21,835
Potential Stop Loss 1: 21,745
Potential Stop Loss 2: 21,835
Potential Take Profit 1: 21,555
Potential Take Profit 2: 21,488
