Nasdaq was bullish earlier with the formation of higher highs and higher lows. It tested the dail and weekly resistance only to start declining from the level. That being said, market started to drop and has broken the support level. The validation is complete and we need to see the retest of the support turn resistance. That being said, we will continue to take a short position from the support turn resistance level.

The ascending trendline is on the verge of breaking out from the trendline. If broken out and validated, there will be a further confirmation of the market sentiment towards the bearish side.

There is no retracement setup on the pair.

The EMA 50 is being tested as the support level. At this test, we assess the market falling back towards the resistance side and then taking a dump.

RSI is at 38, which is near about the over sold region. The market needs to neutralize at the level of 50 and align the technicals with the resistance level in order for the market flow to be bearish.

Textbook breakout and retest on NASDAQ

May 24 2023