Nasdaq Composite Technical Analysis | Forexlive

Yesterday,
the Nasdaq Composite opened lower with probably some profit taking going on
ahead of key risk events in the next few days. The selloff extended following
the miss in the US ISM
Services PMI although most of the losses were reversed into the
close. The market might not overreact to one single bad data point and fade the
moves to continue higher, but it makes it harder for buyers to keep the
conviction.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday fell below the key trendline and
bounced on the red 21 moving average as the
dip-buyers piled in into the close. This break comes after a failed rally above
the all-time high and weak US data, so it makes it more compelling, especially
because there’s no Nvidia earnings to save the day now.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price has been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. We can also notice that the price action formed a rising wedge, so this
breakout opened the door for a fall all the way down to the 14477 level. The
sellers will likely pile in to target the 15454 level first, but ultimately eye
the base of the wedge at 14477.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
market opened lower yesterday and extended the drop after the miss in the ISM
Services PMI. The sellers will now look to sell at the current resistance zone
around the 15950 level and, in case we get a bigger pullback, the 16100 level
near the all-time high.

Upcoming
Events

Today we have the US ADP, the US Job Openings and
the Fed Chair Powell speaking. Tomorrow, we get the latest US Jobless Claims
figures, while on Friday we conclude the week with the US NFP report.