Nasdaq Technical Analysis – The bulls remain in control

Fundamental
Overview

The Nasdaq has been keeping
the bid since last week as the softer than expected US inflation data gave the
market a boost.

We haven’t got any key
economic report since then and no comment from Fed speakers given that they are
in the blackout period.

The main driver of the
price action this week has been Trump and his tariffs threats. We saw a quick
dip on Tuesday as he talked about imposing 25% tariffs on Canada and Mexico
next week, but the market eventually erased the losses.

Overall, it seems like the
market is optimistic about tariffs and the news that Trump is
considering a 10% tariff on China might be a signal that he won’t be as aggressive as promised during his
campaign given that back then he talked about 60% tariff on China.

Nasdaq
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that the Nasdaq broke above the 21890 resistance yesterday although it fell back
below it later on. The sellers will likely pile in around these levels with a
defined risk above the resistance to position for a drop back into the lows.
The buyers, on the other hand, will want to see the price breaking back above
the resistance to position for a rally into a new all-time high.

Nasdaq Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. The
buyers will likely lean on the trendline to position for a rally into a new
all-time high, while the sellers will look for a break lower to increase the
bearish bets into new lows.

Nasdaq Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, there’s
not much we can add here as the buyers will look for a bounce around the
trendline, while the sellers will look for a break lower to target the 21400
level next. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US Flash PMIs.

This article was written by Giuseppe Dellamotta at www.forexlive.com.