Nasdaq Composite Technical Analysis | Forexlive

Yesterday, the Nasdaq Composite held into gains
despite some selling as the US data continued to point to a soft landing. In
fact, the Retail Sales data
beat expectations across the board with consumer spending remaining strong and
the Jobless Claims figures
improved further. The sentiment is extremely bullish, and the soft-landing
outcome is a strong consensus. These are generally contrarian signals, but the
market will likely need some catalysts to prove the soft landing scenario
wrong, otherwise it might just keep on going up.

Nasdaq Composite Technical
Analysis – Daily Timeframe

Nasdaq Composite Daily

On the daily chart, we can see that the Nasdaq Composite
yesterday held into gains despite some selling in the middle of the trading
session. We can also notice that the price is a bit 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

Nasdaq Composite 4 hour

On the 4 hour chart, we can see that the recent breakout
above the cycle high is diverging with the
MACD. This is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we have a trendline
connecting the most recent swing lows and the buyers might want to lean on it
as they will also find the confluence with the
red 21 moving average and the 50% Fibonacci retracement level.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

Nasdaq Composite 1 hour

On the 1 hour chart, we can see that we
have another minor trendline with a steeper slope. More aggressive buyers might
want to lean on it as they will also have the red 21 moving average for
confluence. The sellers, on the other hand, will likely pile in at every break
lower with a break below the major trendline triggering a stronger selloff into
the 14050 support.