The Nasdaq index continues to experience selling pressure after breaching the lower boundary of the Bollinger Bands. This movement suggests a strengthening bearish trend, as current prices fall beneath significant technical support levels. This breakdown indicates negative momentum that could push the index to lower levels in the near future.
Other technical indicators further bolster the bearish outlook. The index’s position below the 24-period Moving Average (MA) signifies seller dominance, while the widening of the Bollinger Bands suggests growing market volatility. If the selling pressure persists, the Nasdaq might test lower levels.
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Correspondingly, the one-hour chart supports this analysis. The 15-minute chart also presents a downside opportunity as the price is currently within a bearish channel, and the MA indicator is trending downward, adding further pressure. Should this scenario unfold, the Nasdaq has the potential to drop and test the support level at 20,700.
Technical References: sell as long as it remains below 21,095
Potential Stop Loss 1: 21,040
Potential Stop Loss 2: 21,095
Potential Take Profit 1: 20,765
Potential Take Profit 2: 20,700
