Nasdaq Composite Technical Analysis | Forexlive

Yesterday,
the Nasdaq Composite finished the day positive despite some pressure for most
of the day. There was no catalyst for the selling other than some general risk
off sentiment due to impending Nvidia earnings. The company crushed
expectations and the stock surged in after-hours trading, so we
can expect the market to open higher today. Moreover, we got the FOMC
Meeting Minutes yesterday but as it’s always the case, they were
stale and didn’t contain anything that the market didn’t already know. Today we will see the latest US Jobless Claims
figures and the US PMIs which will likely be big market movers.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite recently broke through the key trendline and the
red 21 moving average with the
sellers piling in for a bigger correction into the 15150 support. The market
though bounced back into the close erasing most of the losses and finishing the
day near the trendline. Today we can expect the market to open above the
trendline and the buyers to pile in more aggressively as the FOMO will probably
kick in.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more
closely what could have ended up being a retest of the resistance before
another selloff into the 15150 support. This setup is now invalidated, so the
sellers will need to wait for another break below the trendline before
considering new positions. The buyers, on the other hand, will likely push the
price into the all-time high now unless we get some ugly economic data.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see the key
zone marked by the green box that separated the bearish setup from the bullish
one. Given that we open above it today, the bullish setup is the one that got
confirmed, so the buyers will likely remain in control.