Nasdaq Sellers Are Brewing Strength as Buyers Lose Pace

Market Analysis – February 5th

Nasdaq sellers are brewing strength as buyers lose pace. The bears are attempting to cause a U-turn against the previous bullish setup, which has been reflected in the index price since last week. The bulls have been unable to make solid progress, despite their intention to hit new highs. 

Nasdaq Key Levels

Resistance Levels: 17150.900, 18000.000
Support Levels: 16175.000,14012.000

Nasdaq Long-Term Trend: Bullish 

Since the beginning of this year, the market has been experiencing swing highs. The buyers burst out with strong conviction after filling up the liquidity above the significant level of 16000.000. They continued to rise until the end of January. However, early into February, the bullish momentum started to decrease. The sellers began to gain strength as buyers slowly pulled out.

The index price opened this week with the bulls unable to push further, indicating a potential shift in market dynamics. Traders will need the right analysis to identify a breakthrough opportunity. It is crucial to have access to the best forex signals, even amidst the rising selling pressure.

Nasdaq Short-Term Trend: Bullish 

The Stochastic Oscillator, a popular technical indicator, is currently trading in the overbought zone. This suggests that the bulls may be worn out and that the sellers are actively seeking an entry point. However, it is important to note that the market remains in bullish favor until a further dive below the significant level of 16920.000 is confirmed.

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