The Nasdaq index is showing signs of a possible bearish trend following a breakdown in the previously dominant bullish channel. The breach of the lower boundary of this channel suggests that the ongoing bullish trend may be losing strength, increasing the likelihood of a trend reversal. This pattern, which often precedes price corrections, serves as a warning for traders to be cautious about potential further declines, particularly during more volatile trading sessions.
Furthermore, technical indicators such as Moving Average (MA) and Moving Average Convergence Divergence (MACD) are adding to the bearish outlook. The MA indicates that the price is now trending below the MA line, which signals a clear bearish trend. Meanwhile, the MACD is exhibiting a downward crossover between the MACD line and the signal line, confirming that downward momentum is in play.
Recommended
Recommended
Recommended
Recommended
On the other hand, the Stochastic indicator is highlighting an overbought condition on the 15-minute timeframe for the Nasdaq index, suggesting that prices have reached a saturation point and a downward reversal may occur. When Stochastic enters the overbought zone, it indicates that buying momentum is weakening, and the market may be shifting into a corrective phase, making a downward reversal quite probable. This opens up short position opportunities to test the support level of 21,000.
Technical Reference: sell below 21,365
Potential Stop Loss 1: 21,300
Potential Stop Loss 2: 21,365
Potential Take Profit 1: 21,089
Potential Take Profit 2: 21,000
