Nasdaq Composite Technical Analysis | Forexlive
On the daily chart below, we can
see that the buyers stepped in aggressively as the market pulled back to the
61.8% Fibonacci
retracement level of the entire bullish move at the start of
2023.
The price is now just above the trendline that could lead to the
confirmation of the bullish
flag breakout and a possible rally above the 12274 resistance. The sellers will have the 11829
resistance as the last line of defence, otherwise the buyers will confirm the
pattern and take control.
On the 4 hour chart below, we can
see that the market is tentative breaking out of the trendline. Today, we
should see the market opening lower as the Fed tonight took another emergency
action in enhancing US Dollar liquidity via swap lines with other major
central banks.
This weighed on risk sentiment as
the market is fearing that something serious may be happening in the banking
system and this can impact the whole economy. In fact, during the APAC session
we saw futures selling off non-stop.
On the 1 hour chart below, we can
see that the buyers will have the upward minor trendline as support where it’s
likely that they will start to pile in targeting the 11829 resistance and then
a breakout.
We can also find the red long
period moving
average there for confluence. The sellers will need a break
below the trendline to gain some control and then a cross to the downside of
the moving averages will give more conviction as it would be an early signal of
a change in trend.