Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite finished the day
almost flat as the lack of bearish catalysts continues to support the market.
In fact, the path of least resistance remains to the upside as growth and
employment stay resilient, and the Fed continues to signal three rate cuts this
year even if inflation reaccelerates a bit.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite has
been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. We continue to trade inside the rising wedge, so if
the price were to break below the trendline, the
sellers will have much more conviction to look for new lows with the base of
the wedge at 14477 being the ultimate target.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the
price bounced near the bottom trendline where we had the confluence of the
red 21 moving average and
the 50% Fibonacci
retracement level. This is where the buyers kept on
stepping in with a defined risk below the trendline to position for a rally
into a new all-time high. The sellers, on the other hand, will want to wait for
the price to break below the trendline before even considering going short in
this market.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the price yesterday rallying into the
close. We can also see that we have now a black counter-trendline. The buyers
will want to see the price breaking above the counter-trendline to gain even
more conviction and increase the bullish bets into a new all-time high.

Upcoming
Events

Today we get the latest US Jobless Claims figures,
while tomorrow we conclude with the US PCE report and Fed Chair Powell.

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