Nasdaq Composite Technical Analysis

Last Friday, the Nasdaq Composite sold off into the
close as we got risk off flows across the board due to news of imminent Iranian
retaliation. Over the weekend, Iran launched its operation with drones and
missiles against Israel but almost all of them were intercepted and there were
no casualties. In the end, Iran said that the operation was deemed concluded
and we got reports of general de-escalation with the US telling Israel that it
won’t support a retaliation. We might see some positive risk sentiment and
probably gap up with the economic data being in focus next.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite has
been consolidating around the 16206 level for over a month and despite some
bearish catalysts like another hot US CPI and the risk off flows, the price
couldn’t make a new low. This could be a signal that the market is more likely
to break to the upside and print new all-time highs, although we will need to
see a breakout first to confirm it.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price has been ranging between the 16090 support and
the 16480 resistance. The market participants keep playing the range by buying
at support and selling at resistance, awaiting a breakout on either side to
give an indication for the next big move.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the rangebound price action inside the blue box with no clear signal
for the next move until we get a breakout on either side.

Upcoming
Events

This week is a bit empty on the data front with just two
notable reports. Today we have the Retail Sales data while on Thursday we get
the latest US Jobless Claims figures.

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