The Nasdaq index plummeted dramatically at the beginning of trading on Monday (April 7, 2025), even experiencing a noticeable gap down visible on the hourly chart. From a technical perspective, when a gap down occurs, it is common for prices to rebound in an effort to fill that gap.
Last week, the Nasdaq also faced a gap down but did not manage to rebound. This indicates significant pressure weighing on the index.
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Despite this, with the Nasdaq currently at a 15-month low, there is a possibility for a short-term rebound. Additionally, the Stochastic indicator on the 15-minute chart is trending downward, nearing the oversold zone. Once it reaches this territory, the chances for a rebound in the Nasdaq will increase significantly.
Technical Reference: buy while above 16,540
Potential Take Profit 1: 17,000
Potential Take Profit 2: 17,200
Potential Stop Loss 1: 16,540
Potential Stop Loss 2: 16,350
