Head and Shoulders Pattern on NASDAQ Indicates Strong Sell Signal
25 July 2024
The NASDAQ has experienced a sharp decline since mid-July, starting specifically on the 11th. The chart reveals a classic head and shoulders pattern, with the right shoulder forming this week. The price has broken through the neckline, marked by the orange horizontal support, as well as the black uptrend line. These critical breaks signal a strong sell indication. Following these breakouts, the index dropped with significant momentum, confirming a long-term bearish outlook for NASDAQ.
In the short term, a minor pullback might occur, potentially testing the neckline as resistance. However, as long as the NASDAQ remains below the orange resistance and the black uptrend line, the sentiment remains decidedly negative. The break of both the neckline and the uptrend line suggests that the market is shifting towards a more bearish phase.
Investors should watch for any potential short-term corrections, but the overall trend appears to be bearish. The next few weeks will be crucial in determining whether the NASDAQ will continue its downward trajectory or find some support and stability.