Let's examine the current 2025 correction on a logarithmic chart: the price movements show significant similarities to the February 2020 decline. At that time, the global crisis—then driven by COVID-19 panic—fundamentally influenced market movements, while now, trade uncertainties are generated by President Trump's aggressive tariff announcements.
The chart reveals that the Nasdaq is declining steeply, and technical levels play a decisive role: yesterday, the price bounced back from the 61.8% Fibonacci retracement level. However, it is clear that supporting technical indicators—such as the break of the RSI convergence trend on the days triggering the decline—confirm the downward movement.
In the earlier 2020 decline, massive volume accompanied the initial weeks' movements, while this year's movement is characterized by steadily increasing volume. Nevertheless, the current volume peak falls short of the peak measured in the 2020 week (4.45 million vs. 6.8 million), indicating that the trend may continue with further declines.
Overall, technical analysis—the examination of logarithmic charts, the break of the RSI trend, and volume movements—suggests that the current correction may deepen further, and the Nasdaq's target price can be estimated between 14,500 and 15,000 points.
Observing a similar scenario in history, when global events triggered high volatility, it appears that market reactions now do not differ from past patterns. If the current negative trend continues, a further deepening of the correction is plausible, as the lag in market volume (4.45M vs. 6.8M) indicates that investors have not yet been able to offset the negative sentiment prevailing in the sector.
The chart reveals that the Nasdaq is declining steeply, and technical levels play a decisive role: yesterday, the price bounced back from the 61.8% Fibonacci retracement level. However, it is clear that supporting technical indicators—such as the break of the RSI convergence trend on the days triggering the decline—confirm the downward movement.
In the earlier 2020 decline, massive volume accompanied the initial weeks' movements, while this year's movement is characterized by steadily increasing volume. Nevertheless, the current volume peak falls short of the peak measured in the 2020 week (4.45 million vs. 6.8 million), indicating that the trend may continue with further declines.
Overall, technical analysis—the examination of logarithmic charts, the break of the RSI trend, and volume movements—suggests that the current correction may deepen further, and the Nasdaq's target price can be estimated between 14,500 and 15,000 points.
Observing a similar scenario in history, when global events triggered high volatility, it appears that market reactions now do not differ from past patterns. If the current negative trend continues, a further deepening of the correction is plausible, as the lag in market volume (4.45M vs. 6.8M) indicates that investors have not yet been able to offset the negative sentiment prevailing in the sector.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.