Nasdaq Composite Technical Analysis | Forexlive

Last week, the Nasdaq Composite surged to new highs
following the surprisingly dovish FOMC decision where
the Fed increased the rate cuts expected in 2024 to three and Fed Chair Powell
delivered some dovish comments. In the last part of the week, we got a slate of
soft-landing data as the US Jobless Claims and Retail Sales beat
expectations, while the US PMIs missed on the manufacturing side and beat on
the services one.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
consolidated around the recent highs following the dovish FOMC decision and
some soft-landing economic data. There’s still a long way to go for the index
to reach its all-time high but that’s certainly what the buyers are looking
for. From a risk management perspective, the buyers would be better off waiting
for a pullback into the 14449 level before taking new long positions.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the recent breakout
above the cycle high is diverging with the
MACD. This is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we have a trendline
connecting the most recent swing lows and the buyers might want to lean on it
as they will also find the confluence with the
red 21 moving average and the
50% Fibonacci retracement level.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have another minor trendline with a steeper slope. More aggressive buyers might
want to lean on it as they will also have the red 21 moving average for
confluence. The sellers, on the other hand, will want to see the price breaking
lower to position for a drop into the 14449 support and
upon a further break lower, target the 14050 level.

Upcoming
Events

This week is a bit empty on the data front as we head
into the Christmas holidays. On Wednesday, we have the US Consumer Confidence
report. On Thursday, we get the latest US Jobless Claims data, while on Friday
we conclude the week with the US PCE report.