Nasdaq Composite Technical Analysis | Forexlive

Yesterday,
the market reopened after the Presidents Day holiday, and we saw some weakness
in the Nasdaq Composite with the price even breaking a key trendline. There was
no fresh catalyst so it might have been just some profit taking or defensive
positioning into Nvidia earnings today after the close. The other major
development was the PBoC delivering the biggest
5-year LPR rate cut on record, which could lift the general risk
sentiment and support the stock market.

Nasdaq Composite Technical
Analysis – Daily Timeframe

Nasdaq Composite Daily

On the daily chart, we can see that the Nasdaq
Composite yesterday broke through the key trendline and the
red 21 moving average with the
sellers piling in for a bigger correction into the 15150 support. The
price though erased most of the losses and finished the day near the trendline.
The buyers will likely buy this dip expecting a stronger bounce, while the
sellers will look for a continuation in the next few days.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

Nasdaq Composite 4 hour

On the 4 hour chart, we can see more
closely the break and what could be a retest now. This is where the sellers
will likely step in with a defined risk above the trendline to position for a
drop into the 15150 support. The buyers, on the other hand, will want to see
the price rallying back above the trendline to invalidate the bearish setup and
position for a rally into the all-time high.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

Nasdaq Composite 1 hour

On the 1 hour chart, we can see the key support now turned
resistance marked by the green box. What happens
here will likely decide where the market will go in the next few days or weeks.