Bearish Opportunity on NASDAQ: Head and Shoulders in Play

Technical Overview

• The left shoulder and head were established in the previous week. This week, we are observing the completion of the right shoulder, with the price now testing the neckline, marked by a red horizontal line.
• A break below the neckline would confirm the bearish pattern, triggering a sell signal. The targets for this correction would be either the pink horizontal support or the black uptrend line. Such a movement would likely constitute a normal pullback within a broader uptrend.

Market Sentiment

This setup presents an opportunity for a short-term bearish correction, as buyers may take profits after the recent rally. However, should the price find support on the pink level or the black uptrend line, a bullish reversal would likely follow, reasserting the long-term uptrend.

Key Levels to Watch

• Bearish scenario: A confirmed breakout below the neckline could drive the price toward the pink support or the black trendline, offering short-selling opportunities.
• Bullish scenario: Any rebound on these supports would signal a continuation of the bullish trend, creating fresh buying opportunities.