Nasdaq Composite Technical Analysis | Forexlive

The US CPI report missed expectations across the board
yesterday and led to a positive risk sentiment in the market lifting the Nasdaq
Composite above the high. The market pricing for a 25 bps hike at the July FOMC
meeting though remained unchanged, probably because of the strength in the
labour market and the Fed speakers not hinting to any skip or pause after the
CPI release. Anyway, this hike is seen as the final one and the focus will now
switch to growth. As long as there’s no sign of a hard landing happening, the
dips in the Nasdaq Composite should be bought.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the red 21 moving average acted as
dynamic support for the Nasdaq Composite and the buyers kept on leaning on it
to position for an upside breakout. The target should now be the 14649 level as
there’s no strong resistance in sight
until then.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the resistance
at 13867 and the higher lows defined by the black trendline formed
an ascending triangle that was
eventually broken yesterday. We can generally see big moves following breakouts
on either side as the momentum increases due to more buyers or sellers piling
in.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
had a minor pullback into the broken resistance turned
support where the price bounced. We should see the buyers
piling in here with a defined risk below the support to target the 14649 level.
The sellers, on the other hand, will want to see the price breaking below the
support level to confirm a fakeout and extend the fall into the black
trendline.

Upcoming
Events

Today the focus will be on the US Jobless Claims.
Higher than expected data should lead to a pullback, while lower than expected
ones should keep the rally going. Tomorrow, we conclude the week with the
University of Michigan Consumer Sentiment report.