Nasdaq Composite Technical Analysis

Yesterday,
the Nasdaq Composite finished another day basically flat as the lack of
catalysts and the holiday-shortened week led to a rangebound price action. Today we get the US PCE report and some time later
we will have Fed Chair Powell speaking. Both shouldn’t offer any surprises as
the PCE figures generally come in line with expectations and Powell is unlikely
to say anything different from his press conference. As a reminder, today the
market is closed for Good Friday holiday, so if we do get a surprising PCE
release, it will be traded when the market reopens on Monday.

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, and
it’s worth to keep an eye on it because 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 recently where we had the confluence of the
red 21 moving average and
the 50% Fibonacci
retracement level. The buyers keep 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 considering short positions.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the price consolidating around the major
trendline. 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.

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