Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite opened higher as we
got some risk on sentiment following the news of de-escalation between Iran and
Israel after the Iran retaliation. The market came under pressure at the open
as the US Retail Sales beat
expectations by a big margin with positive revisions to the prior figures. The
data continues to run hot and therefore push backword rate cuts expectations.
In the second half of the trading session, we got news of Israel intending to retaliate shortly
triggering another wave of risk off flows which led to some key technical
breaks exacerbating the selloff.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the
daily chart, we can see that the Nasdaq Composite sold off into the
first key support level
at 15929 following the hot US Retail Sales and the geopolitical news. This is
where we can expect the buyers to step in with a defined risk below the level
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 support at 15453.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price broke out of the 3-week long range and triggered more bearish
momentum as the sellers piled in more aggressively to target a break below the
15929 support. After the breakout of the rising wedge, the
market started to rollover from the highs and the chances of seeing a
correction all the way down to the base of the pattern at 14477 increase by the
day.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
now have a trendline
defining the current downward momentum where we can find the confluence of the
38.2% Fibonacci
retracement level and the blue 8 moving average. This
is where we can expect the sellers to step in with a defined risk above the
trendline to position for new lows. The buyers, on the other hand, will want to
see the price breaking higher to increase the bullish bets into a new all-time
high.

Upcoming
Events

This week is a bit empty on the data front with just one
notable report left on Thursday as we get the latest US Jobless Claims figures.
Watch out also for hawkish signals from Fed speakers throughout the week and
Fed Chair Powell today.

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