Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite yesterday didn’t do much as
the market participants were already looking forward to the holidays. On the
data front, the US Jobless Claims beat
expectations across the board, although one beat after a series of misses
shouldn’t be that much of a deal. Overall, this rally is based on shaky grounds
as it’s happening right when the US labour market is starting to show clearer
signs of softening and the Fed is determined to keep rates high for longer. The
bulls can still keep playing the upside, but reducing the risk would be a
better idea.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
continues to target the cycle high at 14446. This incredible rally looks more
like FOMO buying instead of a healthy bullish trend. The sellers are likely to
lean on the cycle high with a defined risk above the level to position for a
drop all the way back to the lows.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the momentum
is starting to waning a bit as we get closer to the cycle high. The buyers
might be taking some profits off the table around these levels and trigger a
bigger pullback.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the divergence with
the MACD is
getting bigger and bigger. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. The price at the moment is trading inside a
rising channel and we can expect the buyers to keep leaning on the lower bound
of the channel to position for more upside. The sellers, on the other hand,
will want to see the price breaking lower to pile in and target the 13700
level.

Upcoming
Events

Today the US is on holiday so the stock market will
be closed. Tomorrow, we conclude the week with the latest US PMIs and the stock
market will close early for Black Friday.