The Nasdaq faced a significant drop at the start of European trading on Friday (December 20, 2024), reaching the first target decline identified in previous technical analyses at 21,150.
The lowest point recorded today was 21,007, nearly hitting the second target decline at 21,000.
The pressure on the Nasdaq remains substantial. In the 1-hour chart, it is trading below the 20-period Moving Average (MA) and the 50-period MA, which have crossed each other previously.
However, the Stochastic indicator has entered the oversold region and is beginning to rise. This suggests a potential rebound, presenting opportunities for selling with a more favorable risk-reward ratio.
In the 15-minute chart, the Stochastic has risen from the oversold territory, reinforcing the likelihood of a short-term increase. The area around 21,380 is still a strong resistance level, while 21,150 now becomes the nearest resistance. As long as this level holds, the Nasdaq could potentially decline towards the psychological level of 21,000. If it can consistently break through that level, the Nasdaq might drop to 20,870.
Technical References: sell beneath 21,150
Potential Take Profit 1: 21,000
Potential Take Profit 2: 20,870
Potential Stop Loss 1: 21,150
Potential Stop Loss 2: 21,380
