Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite yesterday fell hard into the
close with no clear catalyst. It might have been just profit taking as the
market was anyway getting more and more overstretched. The only notable
economic release was the US Consumer Confidence report
where the data beat across the board. We are now close to the Christmas
holidays and liquidity is likely to get thinner which increases the risk of
bigger swings. Today the market will focus on the US
Jobless Claims figures as the labour market continues to be a key spot to watch
for the soft-landing narrative.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
yesterday dropped hard into the close as some profit taking might have ensued.
A pullback was well overdue as the market got “a bit” overstretched. From a
risk management perspective, the buyers will have a much better risk to reward
setup around the 14449 level where we can also find the red 21 moving average for confluence.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the recent breakout
above the cycle high was diverging with the
MACD. This is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we can find some more confluence around the 14449
level as we can also find the trendline and the
61.8% Fibonacci retracement level.
This gives the buyers an even stronger support zone
where to lean on.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have another divergence with the MACD which was signalling a loss of momentum.
The buyers couldn’t defend the minor trendline and the red 21 moving average as
the price fell below it and triggered even more selling with the sellers
increasing their bearish bets into the 14449 support. That support zone will be
they key spot to watch.