The market has been in a clear bearish trend, forming a descending channel with lower highs and lower lows. However, we are now witnessing signs of stabilization as price action begins to consolidate at a critical level.
🔍 Key Observations:
- The price has tested resistance twice around 20,800, failing to break higher. This signals strong selling pressure at this level.
- At the same time, the market has established a short-term support around 20,000, holding the price from making new lows.
- The structure suggests a possible double top formation, which could indicate another rejection and continuation of the bearish trend.
Possible Scenarios:
1️⃣ Bullish Breakout: If the price manages to break above resistance, we could see a trend reversal, leading to a potential recovery towards 21,000+.
2️⃣ Bearish Rejection: If resistance holds strong, another drop could follow, with price targeting the previous support zone or even lower lows.
3️⃣ Range Formation: If the market continues to test this zone without clear direction, we might enter a sideways consolidation phase before the next major move.
What do you think? Will NASDAQ break resistance or head lower?
#NASDAQ #Trading #MarketAnalysis #DoubleTop #BearishOrBullish
🔍 Key Observations:
- The price has tested resistance twice around 20,800, failing to break higher. This signals strong selling pressure at this level.
- At the same time, the market has established a short-term support around 20,000, holding the price from making new lows.
- The structure suggests a possible double top formation, which could indicate another rejection and continuation of the bearish trend.
Possible Scenarios:
1️⃣ Bullish Breakout: If the price manages to break above resistance, we could see a trend reversal, leading to a potential recovery towards 21,000+.
2️⃣ Bearish Rejection: If resistance holds strong, another drop could follow, with price targeting the previous support zone or even lower lows.
3️⃣ Range Formation: If the market continues to test this zone without clear direction, we might enter a sideways consolidation phase before the next major move.
What do you think? Will NASDAQ break resistance or head lower?
#NASDAQ #Trading #MarketAnalysis #DoubleTop #BearishOrBullish
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.