Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite finished the day mostly
flat as the lack of catalysts and the wait for the major economic releases kept
the market at bay. The week will start today as the we get some economic data
and from tomorrow onwards, we will have the top tier releases and the FOMC rate
decision. The market might not like another set of hot data as that should
translate in more hawkish repricing in interest rates expectations with even a
rate hike becoming more likely. Right now, good but not too hot data is what
the market is looking for to push into new highs.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite reached a key resistance zone
around the 15929 level where we can also find the confluence of the 61.8%
Fibonacci retracement level
and the red 21 moving average. This is
where the sellers will likely step in with a defined risk above the Fibonacci
level to position for a drop into new lows. 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 stuck into a little consolidation at the resistance although the
price continues to slowly push to the upside. This week we have key economic
data and the FOMC rate decision on the agenda, so the direction will likely be
set by the data releases.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price action into the resistance level might have formed a bearish flag, but
we will need to see the price breaking the bottom trendline to confirm it. In
case of a breakout to the downside, the measured target would stand around the
14700 level.

Upcoming
Events

Today, we have the US Q1 Employment Cost Index and
the Consumer Confidence report. Tomorrow, we get the US ADP, the ISM
Manufacturing PMI, the Job Openings and the FOMC rate decision. On Thursday, we
will see the latest US Jobless Claims figures. On Friday, we conclude the week
with the US NFP and ISM Services PMI.

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