NASDAQ 100 - Is the Downtrend Losing Steam? 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?
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