Nasdaq Composite Technical Analysis | Forexlive
On the daily Nasdaq chart below, we
can see that after the selloff in February, the market bounced right at the
61.8% Fibonacci
retracement level. The breakout of the trendline and the cross to the upside of
the moving
averages were signalling a possible bull
flag in play, but the buyers needed to break the previous swing resistance first to confirm the pattern.
They did it. The target for the
bull flag looks insane as it stands at the August 2022 high at 13186, but we’ve
seen time after time how the dip buyers managed to push the market up even
though many bad news have been thrown to them, so at this point it wouldn’t be
a surprise anymore.
On the 4 hour chart below, we can
see that at the moment the buyers are trying to break the previous swing
resistance at 12020. A break above would open the door for a rally towards the
next resistance at 12274.
The red long period moving average
will act as dynamic support in case we see a pullback. The sellers at this
point will need a break below the 11492 support to regain conviction and target
new lower lows.
On the 1 hour chart below, we can
see that the market bounced at the 38.2% Fibonacci retracement level before
resuming the rally in the original trend. If we get a pullback, a possible
level where the buyers may lean onto is the red long period moving average and
the 11829 support.