Nasdaq Composite Technical Analysis | Forexlive

Yesterday,
the Nasdaq Composite got under pressure for a couple of hours following the big
miss across the board in the US Retail
Sales data. The market though bounced back strongly afterwards and erased all
the losses to finish the day positive. The buyers look like they are on a
mission as the all-time high remains closely in sight. There’s clearly a strong
risk-on sentiment but it’s becoming very overstretched, and, in such instances,
there are risks of quick selloffs as soon as a catalyst turns the sentiment
around.

Nasdaq Composite Technical
Analysis – Daily Timeframe

Nasdaq Composite Daily

On the daily chart, we can see that the Nasdaq
Composite bounced on the key trendline where we
had also the confluence with the
red 21 moving average and
extended the rally into the 15900 level as the buyers continue to target the
all-time high. The sellers, on the other hand, will need the price to reverse
and break below the trendline to switch the bias from bullish to bearish and
start targeting new lows.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

Nasdaq Composite 4 hour

On the 4 hour chart, we can see that we
had also the 50% Fibonacci
retracement level adding extra confluence around the
trendline. There’s not much to do here given that the price is right in the
middle of the key levels, so we need to zoom in to get some more clarity.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

Nasdaq Composite 1 hour

On the 1 hour chart, we can see that the
buyers can now lean on the minor black trendline but if the price breaks below
it, they will have another opportunity to buy around the major trendline with a
better risk to reward setup.