Nasdaq Slips Below Trendline – Eyes on 22,900 Support

Nasdaq Slips Below Trendline – Eyes on 22,900 Support
In today’s technical piece, we’re focusing on the Nasdaq, which is experiencing a notable downswing that raises red flags for bulls.

The dominant feature on the daily chart is a bearish engulfing pattern, highlighted in a purple rectangle, that formed during yesterday’s session. This pattern is significant because it breaks through the black uptrend line that had previously guided the rally. It’s the first real sign of sustained weakness on the index in quite some time.

The sentiment has clearly turned negative, and the next major level to watch is 22,900, a green-marked horizontal support. This zone has acted as a base in previous moves, but current momentum suggests it’s likely to be tested soon.

A break below 22,900 would trigger a long-term sell signal, confirming a deeper bearish phase in the Nasdaq.

As long as the index remains below the broken uptrend, the risk is skewed to the downside.


 
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