The Nasdaq experienced a sharp decline during the early European trading session on Friday (December 20, 2024), reaching the initial decline target set by previous technical analysis at 21,150.
The lowest point hit today was 21,007, indicating it was close to the second decline target at 21,000.
Pressure on the Nasdaq remains significant, as seen on the 1-hour chart, with the index struggling below the 20-period and 50-period Moving Averages that have previously crossed.
However, the Stochastic indicator has entered the oversold territory and is beginning to trend upwards. This suggests a potential rebound, creating an opportunity for a sell with a more favorable risk-reward ratio.
On the 15-minute chart, the Stochastic has risen from the oversold region, reinforcing the short-term bullish potential. The resistance area at 21,380 remains strong, while the level of 21,150 is now the nearest resistance; as long as this level is not breached, the Nasdaq may drop to the psychological level of 21,000. If it can consistently break above this level, a move towards 20,870 is anticipated.
Technical References: sell while below 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
