Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite yesterday pulled back a bit
although it bounced into the close. The FOMC Meeting Minutes didn’t
show anything new and since it’s a three-weeks old data, the market pretty much
ignored the release. The biggest risk for the market yesterday was the Nvidia earnings report,
which eventually easily smashed expectations.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
yesterday pulled back into the broken resistance now turned support where it
bounced into the close. The buyers need to maintain the bullish momentum as
they target the cycle high at 14446 as a break lower could spark a selloff
especially if it’s supported by even weaker US data.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the upward trendline has been
breached yesterday so the chances for a deeper pullback increased. The sellers
are likely to pile in if the price falls below the support and
target a drop into the 13700 level. The buyers, on the other hand, will need to
defend the 14155 support or else the profit taking below the level might lead
to a selloff.

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, given the trendline break, there’s a high chance that
we see a drop at least into the 14000 level, but if the price falls even lower,
the sellers will likely have free room into the 13700 support.

Upcoming
Events

Today we will get the latest US Jobless Claims report
which is probably going to be the most important release of the week. Tomorrow,
the US will be on holiday so the stock market will be closed. On Friday, we
conclude the week with the latest US PMIs and the stock market will close early
for Black Friday.