Nasdaq Composite Technical Analysis | Forexlive
On the daily chart below, we can
see that we got another selloff once the market broke below the key level at
11492. The fall started as troubles with the Silicon Valley Bank started to flow
via newswires and there were talks of a bank run.
Sure enough, the next day the
bank collapsed, and we got the last selloff. On Monday, thanks to the swift
actions taken by the Treasury and the Fed to calm the markets and the banking
sector, the market rebounded as fears of a banking crisis started to dissipate.
The buyers stepped in aggressively
thanks also to the record fast easing in financial conditions with yields
returning back to the levels seen before the February NFP.
On the 4 hour chart below, we can
see that the setup for the buyers is starting to look interesting. The market
bounced right at the 61.8% Fibonacci
retracement level of the whole upward move since the start of
the year. The price is also breaking above the downward trendline.
This may be a bullish flag
pattern and if confirmed, the target would be the 13150 resistance. The strong rally since Monday
though got a bit overstretched as we can see from the distance between the
price and the blue short period moving
average. It’s likely that we will get first a pullback, maybe back again to the
11492 level.
On the 1 hour chart below, we can
see more closely the breakout. The last line of defence for the sellers will be
the swing resistance at 11829 as a break above would confirm the bullish flag
pattern.
If we get the pullback, the
buyers are likely to pile in at the minor upward trendline near the 11492
support where we will also find the red long period moving average. If the
price break below that strong support zone, the sellers will start to jump in
and try to regain control pushing the price to new lower lows.