Nasdaq 1 day - Imbalance

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📝 Chart Structure Overview
The chart previously formed a rising wedge — a classic bearish reversal pattern — which broke down aggressively.

The breakdown has now led to a steep decline, bringing price back to the major support zone between 17,000 – 17,700, which held strong multiple times in the past (highlighted in purple).

📉 Current Price Action
Current price: 17,618.3

Price is hovering just above a key demand zone from 2023, with a small bounce visible today.

The large red candle breaking through multiple support levels suggests strong bearish momentum, but this area could act as temporary support or a bounce zone.

💹 Volume Analysis
There’s a visible spike in volume, indicating capitulation or panic selling — this can often lead to short-term relief rallies or bounces as buyers step in at support.

📊 RSI (Relative Strength Index)
RSI is 34.76, approaching oversold territory (<30), signaling potential exhaustion of the sellers.

Momentum is still bearish but could be ripe for a short-term bounce or consolidation phase.

⚠️ Key Levels
Support Zone (Demand): 17,000 – 17,700

Resistance Levels:

19,921 (previous support, now resistance)

20,532 (supply zone)

Breakdown Level: ~20,000 (former wedge support)

✅ Potential Trading Setups
1. Reversal/Bounce Play (Short-Term Bullish Idea):

Entry: Around 17,600–17,700 if price stabilizes

Target 1: 18,400

Target 2: 19,200–19,500

Stop Loss: Below 17,000

2. Bearish Continuation (If support fails):

Entry: On break below 17,000 with high volume

Target: 16,000 (next major support)

Stop Loss: Above 17,700

Penafian

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