Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite continues to climb as the
market is starting to look past the war between Israel and Hamas. The
geopolitical risk has always been around a bigger escalation with Iran, but it
looks like the war will remain confined to the Levant. On the domestic side, the
US Consumer Confidence
yesterday fell again although it beat expectations, and the Employment Cost Index showed
that wage growth picked up in Q3 although the market might see it as old news
given the recent softening in the labour market data. Overall, the data is not
supportive for a sustained rally, so the buyers should be careful.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday broke above the bottom trendline which
raises the odds of a bigger pullback into the 13174 resistance. The
buyers might have a bit more confidence now, while the sellers will want to see
the price falling back below the trendline before increasing the bearish bets
and target the 12274 support.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price is
breaking above a strong resistance zone where we had the confluence with the
broken bottom trendline, the Fibonacci retracement levels,
the previous swing low and the downward minor trendline. A break above the 50%
Fibonacci retracement level should confirm the breakout and give the buyers
even more conviction to target the 13174 resistance.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the resistance zone with the 50% Fibonacci retracement level as the
upper limit. More conservative sellers may want to wait for the price to break
below the counter-trendline before increasing the bearish bets into the 12274
support, but for now the odds are in favour of a rally into the 13174
resistance.

Upcoming
Events

This week, we will get lots of tier one data points with
the US labour market and the FOMC decision in focus. Today we have the US ADP,
the ISM Manufacturing PMI, the US Job Openings data and the FOMC rate decision.
Tomorrow, we will get the US Jobless Claims data, while on Friday we conclude
the week with the US NFP report and the ISM Services PMI.