Nasdaq Composite Technical Analysis | Forexlive
Yesterday, the Nasdaq Composite managed to close
the day positive although the price continues to retreat towards the key
support zone around the 16206 level. The lack of catalysts is leading to a slow
and choppy price action with market participants waiting for new information to
start positioning with more conviction.
Nasdaq Composite Technical
Analysis – Daily Timeframe
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq
Composite has
been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. We continue to trade inside the rising wedge, so if
the price were to break below the trendline, the
sellers will have much more conviction to look for new lows with the base of
the wedge at 14477 being the ultimate target.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
Nasdaq Composite 4 hour
On the 4 hour chart, we can see that
from a risk management perspective, the buyers will have a much better risk to
reward setup around the bottom trendline where they will find the confluence of the
red 21 moving average and
the 50% Fibonacci
retracement level. The sellers, on the other hand,
will want to see the price breaking lower to start targeting new lows.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
Nasdaq Composite 1 hour
On the 1 hour chart, we can see that the
price broke out of the minor support zone
around the 16370 level where we had the confluence of the minor trendline and
the red 21 moving average. This should point to a drop into the 16206 support
where the buyers will likely step in with more conviction to position for a
rally into a new all-time high. The sellers, on the other hand, will want to
see the price breaking lower to pile in more aggressively and start targeting
new lows.
Upcoming
Events
Today we have the US Durable Goods and Consumer
Confidence reports. Tomorrow, we have Fed’s Waller speaking. On Thursday, we
get the latest US Jobless Claims figures, while on Friday we conclude with the
US PCE report and Fed Chair Powell.