The Nasdaq index appears to be heading towards further decline after breaking out of its previous bullish channel. With prices dipping below the lower boundary of this channel, bearish signals have strengthened. Coupled with a downward trend in the Moving Average (MA) indicator and negative confirmation from the MACD, the momentum for a downturn seems to be well-established.
Continued selling activity is likely if the index fails to uphold crucial support levels, potentially intensifying the bearish trend. Investors anticipating this movement may seek to capitalize on selling opportunities, especially as selling pressure persists.
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According to an analysis of the hourly chart, the 15-minute chart also suggests a downward trajectory, as the Stochastic indicator indicates a drop from overbought territory, confirming a sell signal. Furthermore, prices are within a bearish channel. If market conditions align, the Nasdaq could test the support level at 21,310.
Technical Reference: Sell as long as it remains below 21,630
Potential Stop Loss 1: 21,575
Potential Stop Loss 2: 21,630
Potential Take Profit 1: 21,380
Potential Take Profit 2: 21,310
