Nasdaq Composite Technical Analysis | Forexlive

Last week, the Nasdaq Composite didn’t move much
given the lack of economic events and the Thanksgiving holidays in the final
part of the week. The only two important reports were the US Jobless Claims and the US PMIs. The
former beat expectations across the board, while the latter came basically in
line with forecasts. This week we can expect more action with the holidays in
the rear-view mirror and some key economic releases on the agenda.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
is getting closer to the cycle high at 14446. We can expect the sellers to step
in around these levels targeting at least a deeper pullback after such an
incredible rally for the entire month. The buyers, on the other hand, should
keep piling in to target new highs until we get a bearish catalyst.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price is diverging with the
MACD which is
generally a sing of weakening momentum often followed by pullbacks or
reversals. In this case, it might be a signal that we could indeed see at least
a pullback very soon. From a risk to reward perspective, the buyers would have
a much better setup around the 13700 support where we
can also find the 38.2% Fibonacci retracement level of
the entire rally.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more clearly
the divergence with the MACD which has been going on since the breakout of the
key trendline around
the 13700 level. The buyers should keep leaning on the lower bound of the
rising channel where they have also the red 21 moving average for confluence. The
sellers, on the other hand, will want to see the price breaking lower to target
a drop into the 14000 level and upon a further break, the support around
the 13700 level.

Upcoming
Events

Tomorrow, we have the US Consumer Confidence report. On
Thursday, we will see the latest US Jobless Claims figures and the US PCE
report. On Friday, we conclude the week with the US ISM Manufacturing PMI which
missed expectations by a big margin the last time.