The Nasdaq index is facing selling pressure after it failed to break through the upper boundary of the Bollinger Bands, indicating a strong resistance at that level. This selling pressure became more evident when the price dropped below the middle line of the Bollinger Bands, which now acts as a dynamic resistance.
The Stochastic indicator, which has decreased from the overbought area, further emphasizes this weakening potential. The downward movement of Stochastic signifies a diminishing bullish momentum and an increasing likelihood of selling pressure dominating in the near term. Should this trend persist, the Nasdaq may test the closest support area that previously served as a consolidation zone.
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There is potential for continued weakness in the Nasdaq following the clear formation of a downward price structure on a 15-minute timeframe. The price movement, which is creating lower highs and lower lows, indicates an ongoing bearish trend. Additionally, the downward sloping Moving Average (MA) reinforces the likelihood of selling pressure testing the support level of 19,175.
Technical Reference: sell if below 19,750
Potential Stop Loss 1: 19,652
Potential Stop Loss 2: 19,750
Potential Take Profit 1: 19,280
Potential Take Profit 2: 19.175
