The Nasdaq’s hourly chart is beginning to show signs of a possible correction, despite the upward trend that has persisted since late June 2025. The price is now nearing the upper line of the green channel, yet it is moving sideways and starting to form a falling wedge pattern in red. Although this pattern usually indicates a potential upward breakout within an uptrend, the price’s proximity to the channel resistance, coupled with a lack of buying momentum, heightens the risk of a correction in the near future.
The MACD indicator supports this scenario, as the histogram continues to shrink and approaches the zero line, reflecting a negative divergence between price and momentum. This signal often serves as an early warning of trend weakening and could potentially trigger a decline. If the Nasdaq breaks below the previous Higher Low (HL) around 22,683, the chances of a deeper correction toward the lower support channel will increase. Given the technical conditions that are starting to weaken, it is advisable for traders to remain cautious of potential further declines and await confirmation of a breakdown before entering positions.
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On the 15-minute timeframe, the Nasdaq displays a bearish technical structure after a clear downward (bearish) channel has formed. The direction of the Moving Average (MA) pointing down reinforces the signal that selling pressure is still dominating short-term movements. Additionally, the MACD indicator remains in negative territory, confirming weak buying momentum and supporting the likelihood of continued correction. As long as the price stays below the upper channel line and there are no valid reversal signals, the potential for Nasdaq’s decline remains significant towards 22,780.
Technical Reference: sell while below 23,010
Potential Stop Loss 1: 22,965
Potential Stop Loss 2: 23,010
Potential Take Profit 1: 22,820
Potential Take Profit 2: 22,780
