Nasdaq Composite Technical Analysis

Yesterday,
the Nasdaq Composite ended the day negative as the relief rally reached some
key resistance levels. The first part of the week has been pretty empty on the
data front, and we hadn’t any Fedspeak due to the blackout period. This has led
to a relief rally which was exacerbated by weaker US PMIs as the
market interpreted them as good news for inflation, although there were some
worrying commentary on the labour market side. Beginning today, we will have
many top tier economic data ahead as the new month comes with new reports.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday found resistance near the 50.0% Fibonacci retracement level. If
we get another push higher, the sellers should step in around the 15929 resistance where
they will also find the red 21 moving average for confluence. The
buyers, on the other hand, will want to see the price breaking higher to
invalidate the bearish setup and increase the bullish bets into a new all-time
high.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price got rejected from the 21 moving average on this timeframe. The 15929
resistance will be key because it should tell us if this was just a pullback
before another flush lower or the first move towards a new all-time high.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have
some minor support around the 15620 level where we can find the confluence of
the 38.2% Fibonacci retracement level and the red 21 moving average. This is
where we can expect the buyers to step in to position for a break above the
15929 resistance with a better risk to reward setup. The sellers, on the other
hand, will want to see the price breaking lower to increase the bearish bets
into new lows.

Upcoming
Events

Today we get the US Q1 GDP and the latest US Jobless
Claims figures. Tomorrow, we conclude the week with the US PCE report.

This article was written by FL Contributors at www.forexlive.com.