Nasdaq Composite Technical Analysis | Forexlive

Last
Friday, the Nasdaq Composite pulled back as a hot US PPI report
weighed on the market. In fact, the Treasury yields rose, and the rate cuts
expectations got trimmed some more as fears of stickier inflation started to
creeping in. The Fed members though keep on dismissing the latest figures as
something expected and continue to repeat that the disinflationary trend
remains intact. This suggests that the Fed is not even considering rate hikes
and in the worst-case scenario could just delay rate cuts. The market might
continue to like this as long as the economic data remains good. Today the
market will be closed for the Presidents Day and will resume trading tomorrow.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite last Friday fell into the close following a hot US PPI report. The
price is now near the key trendline so we
can expect a retest where the buyers will look to buy into the dip to position
for a rally into the all-time high. The sellers, on the other hand, will want
to see the price breaking lower to invalidate the bullish setup and position
for a drop into the 15150 support.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that besides
the trendline we have also the confluence with
the 50% Fibonacci
retracement level and the previous resistance now
turned support. What happens around this level will
likely define where the market will go in the next few weeks.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the key support zone around the trendline
marked by the green box. This gives us a pretty textbook trading setup with the
buyers looking for a bounce and a rally into the all-time high, and the sellers
looking for a break and a drop into the next support at 15150.

Upcoming
Events

This week is basically empty on the data front with just
the release of the FOMC Meeting Minutes on Wednesday followed by the US Jobless
Claims and the US PMIs on Thursday.