The Nasdaq has fallen to its lowest trading level since August 12 this year (2020), as the sell-off in US tech stocks intensifies.
Nasdaq 100 technical analysis shows that the relative strength indicator on the daily time frame continues to issue a sell signal.
Nasdaq 100 medium-term price trend
The Nasdaq has incurred two-days of heavy selling and is on course to post its third consecutive week of losses.
Nasdaq 100 technical analysis shows that the RSI is generating its first sell signal in over five months.
The daily time frame highlights that the RSI has been repeated from the 50 level, further indicating medium-term selling pressure.
Additionally, the Nasdaq has started to weaken below its key 50-day moving average, around the 11,220 area.
Technical analysis shows that the 10,850 and 10,400 areas offer the strongest forms of technical support below 11,000.
Nasdaq 100 short-term price trend
Nasdaq 100 technical analysis shows that the index is bearish over the short term while the price trades below the 11,500 level.
The four-hour time frame is currently showing that a large head-and-shoulders pattern has formed, following the recent technical rejection from the 12,500 area.
According to technical analysis, the neckline of the bearish pattern is located around the 10,850 area.
Watch out for heavy technical selling if a breakout under the 10,850 level occurs, as the Nasdaq could tumble towards the 8,400 area.
Nasdaq 100 technical summary
Nasdaq 100 analysis shows that the index is turning bearish across multiple time frames. A break under 10,850 could dramatically increase technical selling.
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