Nasdaq 100 (NAS100) Three Falling Peaks Signal Weakness

Market Analysis – January 12

The Nasdaq 100 reached a high of 22,143.0, climbing within an expanding channel. However, a three falling peaks chart pattern has surfaced, indicating potential market weakness and a possible shift in direction.

Nasdaq 100 Key Levels

Demand Levels: 20,771.0, 20,129.0, 19,079.0
Supply Levels: 22,143.0, 23,000.0, 24,000.0

Nasdaq 100 Long-Term Trend: Bearish

After peaking at 22,143.0, the price retraced to the support level of 20,771.0. Although bulls tried to regain control, a failed high formed below the previous peak. This was followed by another lower high, completing the three falling peaks pattern, which signals a bearish outlook.

Previously, the 9-period and 21-period Moving Averages supported the upward movement within the expanding channel. Now, these Moving Averages hover above the current price, confirming bearish momentum. Furthermore, the price has broken below the expanding channel, reinforcing the likelihood of a reversal.

Nasdaq 100 Short-Term Trend: Bearish

On shorter timeframes, bearish confluence has emerged from the intersection of the resistance trendline anchored to the three falling peaks and the bullish trendline of the expanding channel. This confluence suggests a potential selloff if the price pulls back to the 20,129.0 level.

The presence of this three falling peaks pattern underscores the importance of monitoring forex signals, as broader market sentiment may also influence the Nasdaq 100’s trajectory.

Make money without lifting your fingers: Start using a world-class auto trading solution 

How To Buy Lucky Block

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.