Nasdaq 1 day - Imbalance 📝 Chart Structure Overview
The chart previously formed a rising wedge — a classic bearish reversal pattern — which broke down aggressively.
The breakdown has now led to a steep decline, bringing price back to the major support zone between 17,000 – 17,700, which held strong multiple times in the past (highlighted in purple).
📉 Current Price Action
Current price: 17,618.3
Price is hovering just above a key demand zone from 2023, with a small bounce visible today.
The large red candle breaking through multiple support levels suggests strong bearish momentum, but this area could act as temporary support or a bounce zone.
💹 Volume Analysis
There’s a visible spike in volume, indicating capitulation or panic selling — this can often lead to short-term relief rallies or bounces as buyers step in at support.
📊 RSI (Relative Strength Index)
RSI is 34.76, approaching oversold territory (<30), signaling potential exhaustion of the sellers.
Momentum is still bearish but could be ripe for a short-term bounce or consolidation phase.
⚠️ Key Levels
Support Zone (Demand): 17,000 – 17,700
Resistance Levels:
19,921 (previous support, now resistance)
20,532 (supply zone)
Breakdown Level: ~20,000 (former wedge support)
✅ Potential Trading Setups
1. Reversal/Bounce Play (Short-Term Bullish Idea):
Entry: Around 17,600–17,700 if price stabilizes
Target 1: 18,400
Target 2: 19,200–19,500
Stop Loss: Below 17,000
2. Bearish Continuation (If support fails):
Entry: On break below 17,000 with high volume
Target: 16,000 (next major support)
Stop Loss: Above 17,700
