NICE Ltd. (NASDAQ:NICE) has entered Phase 9 of its 18-phase Adhishthana cycle on the monthly chart, and the technical picture has deteriorated. The stock appears to have broken its Adhishthana Cakra to the downside, a signal that often precedes a long stretch of consolidation and weakness. Below is how the setup looks through our framework and what investors should watch.

Where NICE Sits in the Cycle

NICE began forming its Cakra in July 2009 and spent more than a decade building that structure through the end of Phase 8 in July 2024. Phase 9 is typically where leaders break out and begin the Himalayan formation. Instead, the stock failed to hold the structure and slipped below it early in Phase 9.

What a Cakra Breakdown Means

A recent example of this dynamic is Illumina (NASDAQ:ILMN), which fell more than 80 percent after a similar failure. You can read our commentary on the stock here

Why Pressure May Persist for NICE

With the Cakra now compromised, the path of least resistance tilts lower. The stock is already down roughly 41 percent from the breakdown point. In bearish phases, price often gravitates toward its Level of Nirvana, which, for NICE, sits near $67. That can keep rallies short-lived and volatility elevated until a new base is formed.

Investor Outlook

The technical break on the monthly chart argues for patience, not heroics. A durable recovery usually requires time, clarity, and evidence that the structure has realigned with the Adhishthana Principles. Until then, we view NICE as an avoid for any long-term positions. Traders who do participate may consider risk-defined tactics only, given the probability of whipsaws.

While several large institutional funds are buying the stock and are maintaining a rather aggressive bullish stance, we still stick to our proprietary model and advise caution to investors.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.