The Nasdaq index is starting to lose its momentum as prices have fallen below the bullish channel on the hourly chart, indicating that bearish pressure is increasingly prevalent. The sharp decline in the Moving Average (MA) indicators, coupled with reversing ZigZag patterns, highlights the weakening strength of buyers and creates greater opportunities for sellers to dominate the market. This scenario illustrates a significant directional shift, with selling pressure pushing down on price movements.
The bearish signals are becoming more robust, supported by the MACD indicator moving in the negative territory, thereby reinforcing the potential for further corrections in the U.S. trading session tonight. Unless prices are able to regain ground above the breaklow level, the downward trend remains more dominant. On an intraday basis, there is still ample opportunity to test the next support level, as market focus is now directed towards crucial technical levels.
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The formation of a bearish channel further intensifies the selling pressure, combined with the significant decline in MA, reaffirming the scenario that the Nasdaq is likely to continue weakening towards testing the critical support area at 23,335.
Technical Reference: sell if below 23,592
Potential Stop Loss 1: 23,555
Potential Stop Loss 2: 23,592
Potential Take Profit 1: 23,380
Potential Take Profit 2: 23,335
