Fundamental
Overview
The Nasdaq has been on the backfoot recently as the goldilocks data led to a
strong rotation into small caps stocks. Yesterday, there was general weakness
across all the indices although it wasn’t triggered by any catalyst. The
fundamentals haven’t changed, on the contrary, they strengthened the case for a
soft landing. The bearish momentum seems to be waning going into the weekend, so the technicals might
be helpful for the dip-buyers to time a possible bounce.
Nasdaq
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that the Nasdaq is now near the trendline around the 19700 level. This is
where can expect the dip-buyers to step back in with a defined risk below the
trendline to position for a rally into a new all-time high. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the next major trendline around the 19000 level.
Nasdaq Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can
see that we have a good resistance zone now around the 20300 level
where we can find the confluence of the downward trendline and the
50% Fibonacci
retracement level.
If we get a bounce from the
19700 support zone, we can expect the sellers to step in around the downward
trendline to position for a break below the 19700 support with a better risk to
reward setup. The buyers, on the other hand, will want to see the price
breaking above the downward trendline and the 20300 resistance to increase the
bullish bets into new highs.
Nasdaq Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can
see that we have another minor downward trendline defining the current bearish
momentum. The sellers will likely keep on leaning on it to push towards the
break below the 19700 support.
The buyers, on the other hand, will want to see
the price breaking above the trendline and the most recent lower high at 19980
to gain even more confidence and increase the bullish bets into the 20300
resistance. The red lines define the average daily range for today.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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