The Nasdaq has started to exhibit a notable decline on the 1-hour timeframe after breaching the lower boundary of the previously supportive bearish channel. This breach signals a crucial technical indication that selling pressure is beginning to dominate the market, coinciding with the loss of the earlier bullish momentum. The price pattern failing to stay within the channel suggests that sellers are beginning to take control of the short-term movement.
The ZigZag indicator is also reflecting a transition pattern from bullish to bearish, evident from the declining structure of highs and lows. This points to a potential stronger trend reversal if the selling pressure continues. As long as the price does not manage to regain the area of the breached channel, further downside potential remains open, with the likelihood that the Nasdaq will test important support levels soon.
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The bearish push on the Nasdaq has intensified after the price successfully broke below the lows of the former bullish channel on the 15-minute timeframe, indicating a loss of buying strength in the short term. This pressure is bolstered by a downward trend in the Moving Average (MA) along with the MACD indicator moving in negative territory, illustrating an increasing selling momentum. This combination of technical signals opens up opportunities for the Nasdaq to continue its decline and test the nearest support level around 22,992.
Technical Reference: sell when below 23,245
Potential Stop Loss 1: 23,273
Potential Stop Loss 2: 23,052
Potential Take Profit 1: 23,052
Potential Take Profit 2: 23,992
