Nasdaq Composite Technical Analysis | Forexlive
On the daily chart below, we can
see that after struggling to break the key 12274 resistance and consolidating just beneath
it, the price started to fall as the US retail sales data missed expectations, jobless
claims kept on deteriorating and early in the week the issues with the First
Republic Bank sent the market into risk off.
Everything seemed to line up
perfectly for the sellers until yesterday when the US
GDP report
showed a stronger than expected economy under the hood as consumer spending
remained resilient and the US
Jobless Claims beat forecasts after several weeks of misses. This
gave the buyers conviction to push to the upside and the bear squeeze caused a
big intraday rally.
On the 4 hour chart below, we can
see that the price bounced just shy of the 38.2% Fibonacci
retracement level. The buyers should now be targeting the key
resistance level and possibly a breakout barring any negative economic data the next week. If we get a
breakout that would give the buyers again the conviction on the big bullish
flag that was broken on the 17th of March and the ultimate target
for that is the 13000 level.
On the 1 hour chart below, we can
see more closely the range since the start of April. The breakdown caused by
the renewed fears around the banking sector may end up being a fakeout. There
isn’t much to do within the range as the best strategy is to sit out and wait
for a breakout supported by a clear fundamental catalyst. More aggressive
traders can “play the range” buying at support and selling at resistance.