Nasdaq Composite Technical Analysis | Forexlive

The Fed made the decision to hold steady at 5.00-5.25%
last week, as it aims to gather more economic data before considering
additional increases. The objective is to achieve the appropriate level of
monetary restraint that can effectively curb inflation without risking a severe
recession or causing harm to the overall economy.

During his testimony to
Congress yesterday, Fed Chair Powell reaffirmed their commitment to
lowering inflation to the target level but acknowledged that there is still a
considerable distance to cover. He further stated that if the economy performs
as anticipated, the two rate hikes outlined in the Dot Plot would be a “pretty
good guess”.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite remains in a strong bullish trend. The recent pullback wasn’t caused
by a negative development on the data front, so it may be just a technical
pullback. The 13174 level is a good support where we
can also find the 50% Fibonacci retracement level
and the red 21 moving average. That’s
where we should expect the market to bounce all else being equal.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price is
currently testing the red 21 moving average and a break below it should open
the door for a fall into the 13174 support. The buyers should lean on that
support level with a defined risk below it and target a new higher high. The
sellers, on the other hand, should wait for the price to break below the 13174
support before piling in and target the 12274 level.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price is printing lower lows and lower highs with the moving averages crossed
to the downside indicating a downtrend. If the moving averages cross again to
the upside and the price makes a new higher high, the buyers may start to pile
in again.

The next important economic reports to watch are the US Jobless Claims today and
the US PMIs tomorrow.