Nasdaq Composite Technical Analysis | Forexlive
As the blackout period concluded after the FOMC
meeting, we heard from numerous Federal Reserve members last week. The sentiment
remains the same: exercising caution and awaiting data to determine the extent
of further rate increases. Although the majority foresees two more rate hikes
this year, they consistently emphasize that such decision will be subject to
the data.
The data we saw last week points more towards a rate
hike, driven by upside surprises in the housing market data, good US Jobless Claims figures,
and strong US Services PMI. Of course,
the next NFP and CPI reports will significantly influence the market pricing, however,
if we keep getting good reports, it’s likely that the Fed will raise rates in
July as the market currently expects.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite, as the other indices, is currently retreating after a strong rally
seen in the past months. The natural support level
looks to be the one at 13174 where we can also find the 38.2% Fibonacci retracement level
and the red 21 moving average. That’s
where the buyers should pile in with a defined risk below and target a new
high. The sellers, on the other hand, should enter at every break lower as they
don’t have a resistance zone where they can lean on to at the moment.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the moving
averages on this timeframe are starting to converge and we may get a crossover
soon if the price keeps falling. We haven’t seen a crossover since the last
May, so the sellers may take it as a further signal of a possible change in the
general trend. Anyway, a break below the 13174 support zone will be key for the
sellers.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the
moving averages are crossed to the downside and the price has been printing
lower lows and lower highs. A break below the current floor at 13445 would open
the door for further downside into the 13174 support. The buyers may also pile
in in case the moving averages cross to the upside and the price makes a new
higher high.
On the data front, this week appears even quieter compared to
the previous one, with only the US Jobless Claims and the US PCE scheduled for
the end of the week. Anyway, we will hear from several Federal Reserve members
once again. However, since we have yet to see any significant economic
indicators like the NFP and CPI, it is unlikely that they will provide signals
regarding the next course of action at this moment.