Nasdaq Composite Technical Analysis

Yesterday, the Nasdaq Composite opened lower but
closed the day positive as we continue to bounce around heading into the FOMC
rate decision today. The lack of economic data was also a contributor to the
rangebound price action of the last few days, so the market is waiting for the
big risk event before taking a direction. There are risks of a hawkish Fed
although the consensus sees the Fed remaining willing to cut rates as they just
need some more confidence from the data before making the final decision.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite yesterday opened the day lower and bounced immediately from the key trendline where we
had also the red 21 moving average for confluence. The
buyers continue to step in with a defined risk below the trendline to position
for a rally into a new all-time high. Unfortunately, the price continues to be
rejected by the strong 16206 resistance where
the sellers keep piling in to position for a break below the trendline to
target new lows with a better risk to reward setup.

Nasdaq Composite
Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price 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 can also notice that the price action formed what
looks like a rising wedge, so if
the price were to break below the trendline and the 15859 level, 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 – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent rangebound price action with the price having a hard time
breaking the key resistance. The buyers will likely keep on stepping in around
the trendline and the 15859 level to position for a break above the resistance,
while the sellers will look for a break below those levels to increase the
bearish bets into new lows.

Upcoming
Events

Today we have the FOMC rate decision where the Fed
is expected to keep rates unchanged. Tomorrow, we conclude with the latest US
PMIs and Jobless Claims figures.

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