Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite continues to rise for inertia
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. The data continues to point to a soft-landing
as the latest US Jobless Claims and Retail Sales beat
expectations, while the US PMIs missed on the manufacturing side and beat on
the services one. The lack of bearish catalysts is supporting the upside for no,
but the buyers should be careful going forward as one meaningfully negative
news could trigger a quick selloff given the overstretched levels.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
yesterday continued to rise as the index is now moving for inertia following
the dovish FOMC decision and some soft-landing economic data. From a risk
management perspective, the buyers would be better off waiting for a pullback
into the 14449 level where they will also find the red 21 moving average for confluence 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 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. Tomorrow, 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.