Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite rose further yesterday as the
lack of bearish catalysts is continuing to support the upside. There’s lots of
euphoria in the market following the dovish FOMC decision last week and the
data has not deteriorated much lately keeping the soft-landing hopes alive.
Nonetheless, the buyers should still be careful going forward as the risk to reward
now is very bad considering the risks in 2024 and the ebullient sentiment.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
yesterday rose further as the index continues to move higher 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. Today, we have the US Consumer Confidence report. Tomorrow,
we get the latest US Jobless Claims data, while on Friday we conclude the week
with the US PCE report.