Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite is
brushing aside the risk of higher interest rates as the strong US economic data
coupled with a slow disinflation is giving the market soft landing vibes. Not
even hawkish comments from Fed Chair Powell pointing to possibly more than two
rate hikes could bring the Nasdaq Composite down. We may keep on seeing dips
being bought as long as the US data doesn’t point to a recession. This trading
week is shortened as the market will close early today and remain closed
tomorrow for the US Independence Day.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite found strong buyers leaning on the red 21 moving average and
avoided a deeper pullback to the 38.2% Fibonacci retracement level
and the 13174 support. The
price is now near the previous 13862 high and the buyers will need to break
above it to extend the rally towards the next resistance at 14649.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the moving
averages have crossed again to the upside as the bullish momentum prevailed and
the buyers are now in control. The sellers may try to position for a downside
move again here with a defined risk above the high and target the 13174 support
first and a break lower next. The buyers will need to break to the upside if
they want to keep the momentum going.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have a good bullish setup for the buyers in case we get a pullback. In fact, we
can find a trendline, a
previous resistance turned
support at 13628, the 61.8% Fibonacci retracement level and
the red 21 moving average. This spot has lots of technical confluence, so
the buyers are likely to step in here with a defined risk below the trendline
and target a break of the high. The sellers, on the other hand, will want to
see the price breaking below the trendline to pile in and target a move towards
the 13174 support.

Upcoming
Events

This week we will see some key economic data beginning
with the ISM Manufacturing PMI today, US Jobless Claims and ISM Services PMI on
Thursday and the main event of the week: the US NFP report on Friday.