Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite ended the day
mostly flat as the market continues to remain on the backfoot waiting for the
Israeli retaliation against Iran. The rising Treasury yields and the stronger
US Dollar are also putting a lid on the gains. Fed Chair Powell
yesterday didn’t add anything new on the monetary policy front, but he did state
that if inflation were to persist, they would just hold rates steady for
longer. This might give the market some relief as the bar for rate hikes is set
very high.

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. The price
ranged for the entire trading session yesterday as the risk sentiment remained
negative. This is where we can expect the buyers to step in with a defined risk
below the low to position for a rally into a new all-time high. The sellers, on
the other hand, will want to see the price breaking the low 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 increases by
the day.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have
a trendline
defining the current downward momentum where we can find the confluence of the
38.2% Fibonacci
retracement level and the red 21 moving average. If we
get another pullback, we can expect the sellers to step in around the trendline
with a defined risk above it to position for new lows. Alternatively, the
sellers can wait for the price to break the low to increase the bearish bets
into 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 tomorrow as we get the latest US Jobless Claims figures.

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