Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite yesterday broke through the
key swing high level at 14155 as the lack of economic releases gave the green
light for the bulls to continue charging higher. This incredible rally is
happening right when the US labour market is starting to show clearer signs of
weakness. At the moment, the market might be still trading based on interest
rates expectations but watch out for pain if the data starts to rollover more
quickly. Today, the market participants will also eye Nvidia earnings after the
close, which is likely to be more important than the FOMC Minutes release.

Nasdaq Composite Technical Analysis
– Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
broke through the key swing level at 14155 yesterday and it’s now eyeing the
cycle high at 14446. This rally looks like a FOMO play and it’s happening right
when the US data, especially on the labour market side, is starting to
deteriorate.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the buyers
leant on the trendline and the
blue 8 moving average to
position for a breakout above the key swing level. The next target for the
buyers should be the cycle high but watch out for Nvidia earnings today as even
a slight disappointment could lead to a pullback.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the price
continues to diverge with
the MACD. This
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the sellers will want to see the price breaking below
the trendline and the 14155 level to position for a drop into the lows. The
buyers, on the other hand, are likely to continue to lean on the trendline and
the 14155 support.

Upcoming
Events

This week is pretty empty on the data front with the US
on holiday for Thanksgiving Day in the final part of the week. Today, we have
the FOMC Meeting Minutes but it’s unlikely to be market moving given that it’s
three-weeks old data. Tomorrow, we have the US Jobless Claims report which is
probably going to be the most important release of the week. Finally, on
Friday, we conclude the week with the latest US PMIs.