The Nasdaq is currently experiencing notable pressure after the index successfully breached the lower boundary of the Bollinger Bands, a clear sign that indicates the possibility of a continuing downward trend. This situation is exacerbated by other technical indicators that further confirm the potential for a decline. The Bollinger Bands, which are used to assess market volatility, suggest that the Nasdaq is in an oversold state; however, the breach below this threshold indicates an increase in selling pressure.
Moreover, additional technical indicators such as Moving Average (MA) and MACD are also displaying bearish signs. The MA indicates a downward trend that reinforces the bearish signal, while MACD reveals a deepening decline in momentum. With these two primary indicators, the likelihood of further descent for the Nasdaq appears greater, and investors should be alert to the possibility of an additional correction.
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The Nasdaq could continue its decline as the Moving Average (MA) begins to show a bearish tilt, indicating a shift in trend towards the downside. Additionally, the Commodity Channel Index (CCI) has dropped from the overbought range, suggesting that selling pressure is intensifying and bearish momentum is starting to dominate. If this selling pressure persists, the Nasdaq may test the support level at 19,770.
Technical Reference: Sell while below 20,140
Potential Stop Loss 1: 20,052
Potential Stop Loss 2: 20,140
Potential Take Profit 1: 19,843
Potential Take Profit 2: 19,770
