The NASDAQ 100 index, in July, experienced a bearish breakout, initiating the current downward trend visible on the daily chart. Recently, the price tested the demand level at 12,280, leading to a retracement that has pushed it into the premium zone of the bearish displacement.
The price movement below the Moving Averages within the Bollinger Bands indicator reflects a shift in market direction. Previously, during May and June, the price remained above the Moving Averages, indicating an uptrend.
The Stochastic indicator signaled a bullish exhaustion at 20,783.0. Initially, the price decline appeared to be a minor retracement, but upon reaching the demand level of 19,453.0, a complete reversal in price action occurred.
Nasdaq 100 Short-Term Trend: Bearish
The recent bearish displacement from 19,453.0 to 17,791.0 has seen the price rise above 50% of its range, entering the premium zone. A bearish order block is present in this zone on the daily chart. A change in character is anticipated, which could establish forex signals with a favorable risk-to-reward ratio, aligning with the higher timeframe analysis.
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