The Nasdaq 100 has broken below both the Ichimoku cloud and its 50-period average on the 5-hour chart. The breakdown signals heightened bear risk, but an extreme oversold Money Flow Index reading points to a possible rapid rebound.
The Nasdaq 100 is clinging above 30,849 on the 5-hour chart after a confirmed breakdown below both the Ichimoku cloud and the 50-period average. Investing.com's analysis reads this as heightened bear risk.
Momentum turns lower
The price closed below the Ichimoku cloud (30,986–31,137) and SMA(50), which tips the medium-term trend bearish. Momentum is accelerating lower as well: MACD sits at -38.29 against a signal of 9.36, and SuperTrend flashed a fresh sell signal at 31,351.
However, the Money Flow Index stands at an extreme oversold 9.11. Such readings often precede sharp counter-moves, and a reading below 10 is known for setting up a short squeeze.
Double top tests its neckline
A double top at 31,614, 80% complete, is testing its neckline, which adds to the risk of follow-through selling. A bearish marubozu candle at the latest close also confirms seller control, and volume increased as price pushed lower.
Therefore the levels matter. Key supports are 30,575, then 29,931, with the 200-period average at 30,036. The analysis marks 30,600–31,000 as a no-trade zone where whipsaws are common.
Bulls need a reclaim
Price was at 30,859 on the latest bar. Bulls need a bounce or a reclaim of the cloud and SMA(20), and without one the next leg could drive toward 30,036–29,931. A bull entry at 31,200 carries low confidence in the source's scenario table.
Bears face a trap-door risk if a reversal comes. The analysis adds that successful traders plan exits as carefully as entries.
Source: Investing.com
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