Nasdaq Composite Technical Analysis | Forexlive

Yesterday,
the Nasdaq Composite opened higher following the strong Nvidia
earnings release the prior day. Moreover, we got again some strong US data as
the US
Jobless Claims beat expectations and the US PMIs
continued to point to a resilient economy. At the moment, there’s no bearish
catalyst in sight, so we will likely see some more upside for the stock market
and possibly a new all-time high in the next few days.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday opened much higher than the previous close as Nvidia
earnings after the close pushed the market to new highs. The index is now very
close to the all-time high and we can expect the buyers to keep bidding the
price into the key level targeting a breakout. The sellers, on the other hand,
might step in around the all-time high with a defined risk above it to position
for a break below the trendline and even
lower prices afterwards.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more
closely yesterday’s big jump with the price now less than 1% away from the
all-time high. There’s not much else to glean from this chart so we need to
zoom in to see some more details.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have now a support zone
around the 15900 level. If we were to get a pullback, we can expect the buyers
to pile in there with a defined risk below the zone to position for another
rally into new highs. The sellers, on the other hand, can only wait for a break
below the major trendline before considering new positions.