The Nasdaq has experienced a shift in trend direction after failing to remain within a bullish channel and instead witnessing a break low followed by a sharp decline. This situation indicates a transition of dominance from bidders to sellers, with selling pressure becoming increasingly apparent on the 1-hour timeframe during the US session this evening. The Zigzag pattern forming a downward structure, along with the downward trajectory of the Moving Average (MA), further emphasizes the potential for a bearish outlook in the short term.
Furthermore, the MACD indicator is now under pressure in the negative territory, providing additional confirmation of the weakening upward momentum. This combination of technical signals presents a significant opportunity for the Nasdaq to continue its downward trend, with market focus shifting to the next crucial support level. Should selling pressure persist, the Nasdaq may enter a deeper correction phase as seller dominance strengthens.
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On the 15-minute timeframe, the Nasdaq increasingly displays selling pressure after a break low occurred within the bearish channel, simultaneously forming a new low level. This price structure reinforces the dominance of sellers, while the stochastic indicator in the overbought territory adds further signals that the downward momentum may continue. With this combination of technical factors, the Nasdaq is poised to extend its decline to test the crucial support level around 23,236.
Technical References: Sell while below 23,560
Potential Stop Loss 1: 23,500
Potential Stop Loss 2: 23,560
Potential Take Profit 1: 23,280
Potential Take Profit 2: 23,236
