Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite this week rallied into a key
swing level following the miss in the US CPI report. The
market is still trading based on the inflation and interest rates expectations
and ignoring the deteriorating labour market and growth data. The lack of a
rally following the better than expected US Retail Sales data and
the miss in the US PPI and Jobless Claims figures
though, might be a sign that the rally got overstretched and we could see at
least a pullback.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
is consolidating just below a key swing level at 14155 after an incredible
rally following the miss in the US CPI report. We can also notice that the price
got a bit overstretched as depicted by the distance from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that in case we get
a pullback, the buyers might want to lean on the support zone
around the 13700 level where they will also find the red 21 moving average for confluence. The
sellers, on the other hand, are likely to step in already at these levels with
a defined risk above the high to position for a drop into the support.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the price
is diverging with
the MACD right
at the key resistance. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. In this case, the buyers might also want to
lean on the upward trendline where
there’s also the 38.2% Fibonacci
retracement level for confluence. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the support zone.