The Nasdaq index is facing selling pressure after failing to break through the upper Bollinger Bands, signaling that prices have reached an extreme zone and are susceptible to a pullback. This situation is further strengthened by the Stochastic indicator, which is in the overbought territory, indicating that buying momentum is beginning to wane and the possibility of a reversal increases. Should the selling pressure persist, the Nasdaq could experience a deeper correction, particularly if it breaches the nearest support level.
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Additionally, the Nasdaq may continue its decline as the Moving Average (MA) starts to show a bearish inclination, indicating a trend shift toward the downside. Moreover, the Commodity Channel Index (CCI) has sharply fallen from the overbought zone, suggesting that selling pressure is intensifying and bearish momentum is beginning to take precedence. If the selling continues, the Nasdaq might test the support level at 21,105.
Technical Reference: sell while below 21,490
Potential Stop Loss 1: 21,425
Potential Stop Loss 2: 21,490
Potential Take Profit 1: 21,190
Potential Take Profit 2: 21,105
