Nasdaq records huge losses 14/2/2024

In the backdrop of a negative trading session, the Nasdaq index faced significant losses during American trading, bottoming out at 17476.

Today’s technical analysis suggests a tilt towards pessimism, with focus on sustained trading below key resistance levels. Particularly, the once-supportive level now turned resistance at 17800, and notably at 17840, coupled with downward pressure exerted by the 50-day simple moving average.

In light of these factors, the potential for further declines remains pertinent, with initial targets set at 17550. A breach of this level could intensify the downward momentum, paving the way for a descent towards 17480, with further losses potentially extending to 17425.

Conversely, a resurgence in stability above the 17840 mark could signal a reversal, propelling the index towards retesting the 18065 level.

Warnings:

1. Today’s market activity may experience heightened volatility due to the release of high-impact economic data from the British economy, including the annual consumer price index and the Governor of the Bank of England’s speech.
2. Elevated risk levels amid ongoing geopolitical tensions underscore the need for cautious risk management strategies to navigate potential price fluctuations.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 17425	R1: 17840
S2: 17250	R2: 18065
S3: 17010	R3: 18245