Nasdaq Composite Technical Analysis | Forexlive
On the daily chart below, we can
see that the price has now fallen to the key 11492 support where we can also find the 38.2%
Fibonacci
retracement level. This level will be key for both buyers and
sellers.
Overall, the work for the buyers
is more challenging as the market started to price in a higher terminal rate as
many key economic data came in hot recently and there’s a chance the Fed will
be forced to do more, ultimately causing a recession.
The moving
averages have also crossed to the downside signalling a possible change in
trend. We will have another set of key economic data soon and we will see if
the January data was indeed just a blip, or the Fed has slowed the pace of
hikes too early.
On the 4 hour chart below, we can
see how the price is founding strong support at the 11492 level. We may see a
little range here until new information comes in and gives the market the
direction.
A clean break below will give the
sellers more conviction to target possibly the 11000 level, with a further fall
potentially leading to the 2022 low at 10092.
On the 1 hour chart below, we can
see the little range between the 11632 resistance and the 11492 support. A break
above the resistance and the 38.2% Fibonacci retracement level should give the
buyers some conviction for an upside extension, possibly to the 61.8%
retracement level.
The moving averages are crossing
upwards, but it may be a false signal as it generally is within a range.