The Nasdaq index is experiencing pressure after being rejected from the upper limits of the Bollinger Bands, indicating a potential loss of bullish momentum. This rejection highlights that prices have reached an overbought level, thereby increasing the likelihood of a correction towards the nearest support levels. Additionally, the Commodity Channel Index (CCI), which indicates an oversold condition, suggests that selling pressure may intensify in the near future.
The technical patterns observed serve as a warning for traders, signaling that the chances of a downward correction are broadening. However, traders are advised to closely monitor key levels, such as the primary support for the Nasdaq, which will determine whether this correction is a temporary setback or might develop into something more significant.
Recommended
Recommended
Recommended
Recommended
The Nasdaq shows signs of correction on the 15-minute chart, as the Moving Average (MA) indicator consistently signals a downward trend. The price movement being below the MA line reinforces the selling pressure in the market. Furthermore, the Commodity Channel Index (CCI) is declining from the overbought range, providing additional confirmation that further declines are in progress. The combination of these indicators suggests a potential correction towards the 21,919 level.
Technical Reference: sell while below 22,080
Potential Stop Loss 1: 22,048
Potential Stop Loss 2: 22,080
Potential Take Profit 1: 21,945
Potential Take Profit 2: 21,920
