Nasdaq Composite Technical Analysis

Yesterday,
the Nasdaq Composite ended the day positive amid a lack of bearish catalysts. It
might have been one of those times when no news is good news as the
geopolitical fears around the Israel-Iran escalation waned. It might also have
been just a dead-cat bounce after an oversold market. Nevertheless, the US PMIs
and the US PCE this week will be market moving catalysts, and it’s likely that
more inflationary pressures could weigh on prices again given the recent shift
in the Fed’s stance.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday bounced near the 15162 support and
rallied into the 15453 resistance where we can also find the blue 8 moving average for
confluence. This is where we can expect the sellers to step in with a defined
risk above the resistance 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 position for a rally back into the 15929 level.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more
clearly the rally into the 15453 resistance with the price rejecting the blue 8
moving average. There’s not much else to glean from this chart, so we need to
zoom in to see some more details.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we had
a trendline
defining the bearish momentum with the red 21 moving average acting
as dynamic resistance. The price yesterday broke through it, which might be an
early signal of a change in sentiment although we will need to see a
continuation to confirm it. In fact, if the price were to fall back below the
trendline, we can expect the sellers to pile in and position for a drop into
new lows. Conversely, if the price were to continue higher, the buyers will
likely increase the bullish bets into the 15929 resistance.

Upcoming
Events

Today we have the US Flash PMIs. On Thursday, we get
the US Q1 GDP and the latest US Jobless Claims figures. On Friday, we conclude
the week with the US PCE report.

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