The Nasdaq is displaying signs of potential rally after establishing a Double Bottom pattern, which serves as a strong bullish indication in technical analysis. This pattern forms when the price hits the same support level twice prior to a subsequent increase, signaling that selling pressure is diminishing and buyers are beginning to take control.
Additional confirmation arises from a price breakout that successfully surpassed the upper boundaries of the Bollinger Bands, indicating heightened volatility and the possible continuation of an upward trend. If the price maintains its position above this breakout area, the Nasdaq could continue to strengthen towards the next resistance level.
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The Commodity Channel Index (CCI) indicator is signaling positively after rising from the oversold territory on the 15-minute chart, suggesting that the possibility of a trend reversal in the Nasdaq is increasingly plausible. When the CCI moves out of the oversold zone, it often indicates that selling pressure has decreased and buying is beginning to dominate the market. This condition suggests that the Nasdaq could strengthen in the short term, testing a resistance level of 20,424.
Technical Reference: buy while above 19,895
Potential Take Profit 1: 20,334
Potential Take Profit 2: 20,424
Potential Stop Loss 1: 19,973
Potential Stop Loss 2: 19,897
