The Nasdaq has shown a significant shift in trend direction after failing to remain within the bullish channel, resulting in a breaklow followed by a steep decline. This situation indicates a transition of dominance from buyers to sellers, with increasingly evident selling pressure on the 1-hour timeframe. The Zigzag pattern forming a downward structure, alongside the downward movement of the Moving Average (MA), underscores the potential for a bearish trend in the short term.
Moreover, the MACD indicator, which is currently under pressure in the negative zone, provides further confirmation of waning upward momentum. The combination of these technical signals opens a considerable opportunity for the Nasdaq to continue its downward trend, with market attention focused on the next significant support level. If selling pressure persists, the Nasdaq might enter a deeper correction phase as the dominance of sellers grows stronger.
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On the 15-minute timeframe, the Nasdaq is increasingly showing selling pressure after experiencing a breaklow within the bearish channel, which has also established a new low. This price structure emphasizes the dominance of sellers, while the stochastic indicator, currently in the overbought area, sends an additional signal that the downward momentum still has potential to continue. With this combination of technical factors, the Nasdaq stands a chance of further weakening to test the significant support level around 23,236.
Technical References: sell below 23,560
Potential Stop Loss 1: 23,500
Potential Stop Loss 2: 23,560
Potential Take Profit 1: 23,280
Potential Take Profit 2: 23,236
