Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite is losing some momentum as we
approach the cycle high and many key economic releases in the next few weeks
that will culminate in the FOMC rate decision on the 13^th of
December. The market at the moment is focused mainly on the rate cuts
expectations, which continue to support the upside as long as the data doesn’t
deteriorate faster.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
has lost some momentum as the index started to consolidate. We can expect some
profit taking around these levels after such an incredible rally in November
which might also provide a decent pullback for the buyers.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price has
been diverging with the
MACD recently
which is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, it might be a signal that we could indeed see at least
a deeper pullback soon. From a risk to reward perspective, the buyers would
have a much better setup around the 13700 support where we
can also find the confluence with the
38.2% Fibonacci retracement level of
the entire rally.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price has been diverging with the MACD since the breakout of the key trendline around
the 13700 level. The price yesterday broke below the lower bound of the rising
channel which might be the confirmation for the start of the pullback. The
sellers are likely to pile in to target the base of the channel around the
14040 level and upon a further break lower, aim for the support zone at the
13700 level.

Upcoming
Events

Today, we will get the latest US Consumer Confidence
report and it will be interesting to see how the US consumers see the labour
market. On Thursday, we will see the US PCE and US Jobless Claims data with the
market likely focusing more on the latter given that we already saw the latest
inflation data with the US CPI report just two weeks ago. Finally, on Friday,
we conclude the week with the US ISM Manufacturing PMI which missed
expectations by a big margin the last time.