Yesterday,
the Nasdaq Composite extended the rally following the weaker than expected US PMIs. The
commentary was a mixed bag though as there was good news on the inflation front
but bad news on the labour market side. The market evidently focused on the
fact that it reduced the chances of a more hawkish interest rates path for now
which triggered a relief rally.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite yesterday extended the rally and eventually closed the gap with the
blue 8 moving average as the
market came into better balance after the last week’s selloff. We can see that
there’s also the 38.2% Fibonacci retracement level
adding confluence to the
moving average. This is where we can expect the sellers to step in with a
defined risk above the Fibonacci level to position for a drop into new lows.
The buyers, on the other hand, will want to see the price breaking higher to
increase the bullish bets into the 15929 resistance.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that
the sellers will have an even better risk to reward setup around the 15929
resistance where they will find the confluence of the red 21 moving average and
the 50% Fibonacci retracement level. The buyers will want to break above that
resistance zone to increase the bullish bets into a new all-time high.
Nasdaq Composite
Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we now
have a minor trendline
defining the bullish momentum with the blue 8 moving average adding extra
confluence. We can expect the buyers to lean on the trendline to keep bidding
the market up into the 15929 resistance. The sellers, on the other hand, will
want to see the price breaking below the trendline to increase the bearish bets
into new lows.
Upcoming
Events
Tomorrow we get the US Q1 GDP and the latest US Jobless
Claims figures. On Friday, we conclude the week with the US PCE report.
This article was written by FL Contributors at www.forexlive.com.
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