Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite opened lower
following a selloff caused by surprisingly high Core PCE data in the US Q1 GDP report. The market started to fade the move
right at the open and eventually finished the day almost unchanged. Today we conclude the week with the US PCE report and judging by yesterday’s
price action, we might see another rally at least until the new month data next
week changes the sentiment.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday opened lower but eventually rallied all the way back to the
prior day’s lows. From a risk management perspective, the sellers will have a
much better risk to reward setup around the 15929 level where they will also
find the confluence of the
50% Fibonacci retracement level
and the red 21 moving average. 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

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. Given
yesterday’s price action, we might see another push to the upside, right into
the 15929 resistance where
the sellers will look to pile in with a defined risk above the resistance to
position into new lows.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the yesterday’s negative gap which was filled soon after as the market
rallied for the entire trading session. Moreover, we should see a positive gap
today as tech earnings after the
were much better than expected and some key stocks
like Alphabet surged into new highs.

This article was written by FL Contributors at