The Nasdaq continues to experience selling pressure after breaking below the lower limit of the Bollinger Bands. This movement signals a strengthening bearish trend, with prices currently trading below a significant support level. This breakdown indicates a negative momentum that could push the index to lower levels in the near term.
Additional technical indicators also bolster the bearish outlook. The index’s position below the 24-period Moving Average (MA) indicates seller dominance, while the widening of the Bollinger Bands to the downside suggests increased market volatility. If the selling pressure persists, the Nasdaq may test the next support level.
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Similarly, the one-hour chart analysis corroborates this view. The 15-minute chart also presents a downward opportunity, as prices are currently situated within a bearish channel, and the MA indicator points downward, adding to downward pressure. If this scenario unfolds, the Nasdaq is likely to test the support level at 20,580.
Technical Reference: sell while below 21,020
Potential Stop Loss 1: 20,940
Potential Stop Loss 2: 21,020
Potential Take Profit 1: 20,656
Potential Take Profit 2: 20,580
