Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite last week jumped following the
miss in the US CPI report
and went into consolidation ever since. The market doesn’t expect the Fed to
hike anymore and it’s pricing in the
first rate cut in May 2024.

At the moment, it looks like the market is still
trading based on inflation and interest rate expectations, but the softening in
the labour market as seen with the last NFP and Jobless Claims last
week, is gathering pace and it’s something to keep a close eye on.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
is consolidating at a key swing level at 14155 after the jump triggered by the
miss in the US CPI report. The rally was overstretched as depicted by the
distance from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price is
now leaning on the upward trendline. This is
where the buyers are likely to step in with a defined risk below the trendline
to position for a break above the swing level and target the 14650 high. The
sellers, on the other hand, will want to see the price breaking lower to
position for a drop back into the key support around
the 13700 level.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the price
is diverging with
the MACD right
at the key resistance. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. In this case, it might be a confirmation
that we could indeed see a deeper pullback into the 13700 support but a
breakout on either side should give the final answer.

Upcoming
Events

This week is pretty empty on the data front with the US
on holiday for Thanksgiving Day in the final part of the week. Tomorrow, we
have the FOMC Meeting Minutes but it’s unlikely to be market moving given that
it’s three-weeks old data. On Wednesday, we have the US Jobless Claims report
which is probably going to be the most important release of the week. Finally,
on Friday, we conclude the week with the latest US PMIs.