The Nasdaq index is showing signs of a potential further decline following its breakout from a previously established bullish channel. As the price breaks below the channel level, the bearish signals become increasingly pronounced. Additionally, with the Moving Average (MA) indicator trending downward and the MACD offering negative confirmations, the downward momentum is being sustained.
Continued selling pressure is anticipated if the index fails to hold crucial support levels, which could exacerbate the bearish trend. Investors anticipating this movement may look for opportunities to sell, given the growing selling pressure.
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A look at the one-hour chart aligns with this analysis. The 15-minute chart reinforces the downward potential, as the Stochastic indicator begins to drop from the overbought region, confirming a sell signal while the price sits within a bearish channel. Should this scenario play out, the Nasdaq could test the support level at 21,812.
Technical Reference: sell below 22,030
Potential Stop Loss 1: 22,030
Potential Stop Loss 2: 22,095
Potential Take Profit 1: 21,860
Potential Take Profit 2: 21,812
