Nasdaq Composite Technical Analysis | Forexlive

We’ve seen the Nasdaq
Composite rising despite the risk of more rate hikes or even a recession. The
market may be increasingly confident that the economy will be fine in the end
and inflation will return back to target without too much pain. In fact, despite
the fast monetary tightening, the labour market remains strong, and the hard
data hasn’t showed too much weakness in the economy.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite bounced on the red 21 moving average and
rallied back to test the 13863 high. If we get a clear breakout, the buyers may
start to pile in even more aggressively as the fear of missing out would kick
in and probably take us to the 14649 resistance.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that from a risk
management perspective, the buyers would be better off waiting for the price to
fall into the 13174 support where we can also find the 38.2% Fibonacci retracement level
and the trendline. That
would be a strong support zone and the sellers would need to break below it to
get more conviction and target the next support at 12274.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have a minor upward trendline and the red 21 moving average in the same spot.
The buyers may want to step in here with a defined risk below the trendline and
target the breakout and new higher highs. The sellers, on the other hand, will
want to see the price breaking lower to position for a selloff into the 13174
support.

Upcoming
Events

Today we have the US Jobless Claims and the ISM
Services PMI, while tomorrow will be the time for the main event of the week:
the US NFP report. Good data should support the market as we saw in the
previous occasions, while bad data might bring back recession fears and send
the market lower.