Nasdaq Composite (IXIC) Technical Analysis

<p class=“MsoNormal“>Following the <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>NFP</a> and <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>ISM
Services PMI</a> data on Friday, in terms of technical analysis, the market continues to
maintain a bullish bias for the Nasdaq Composite. </p><p class=“MsoNormal“>The beat on jobs numbers and miss
on average hourly earnings, gave the market a reason to speculate on a
goldilocks scenario where the labour market remains healthy without wage
inflation. </p><p class=“MsoNormal“>Moreover, the big miss in ISM
Services PMI made the market to expect an earlier pause from the Fed in their tightening
cycle or even earlier cuts. </p><p class=“MsoNormal“>There were some expectations that
<a target=“_blank“ href=““ target=“_blank“ rel=“follow“>Fed
Chair Powell</a> could touch on recent economic data or possibly
hint to future monetary policy actions in his speech in Sweden, but he
didn’t offer anything, which kept the market bias intact. </p><p class=“MsoNormal“>The next big event will be the US
CPI on Thursday where another miss may send the market even higher, while a
beat could make it tank.</p><p class=“MsoNormal“>Nasdaq Composite (IXIC) Technical Analysis</p><p class=“MsoNormal“>On the technical side as you can
see in the daily chart above, after the price nearly touched the October low at
10096, it went into a consolidation before breaking up to the upside and now
eyeing the <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>resistance</a> zone at 10900-11000. That <a target=“_blank“ href=““>resistance</a> could decide the next movement. </p><p class=“MsoNormal“>A break to the upside should give
buyers control and the next target would be the <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>resistance</a> at 11500 zone. A failure to
break that, will give sellers control and they will eye again the October low
at 10096 if not even lower.</p><p class=“MsoNormal“>On the 1-hour chart above, we can
see that the price went back to the top of the <a target=“_blank“ href=““>falling
wedge pattern</a> as that’s usually the target once the price breaks
out of the wedge. The price failed to sustain the bullish momentum and retraced back to
the near-term <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>support</a> (orange line) at 10612 before
continuing its upside move. </p><p class=“MsoNormal“>Drilling down to the 15-minutes
chart above, we can see that the bullish bias remains intact, and the buyers
should now target the <a target=“_blank“ href=““>resistance</a> zone at 10900-11000 as the most
likely scenario. </p><p class=“MsoNormal“>If the price falls and breaks
down the <a target=“_blank“ href=““ target=“_blank“ rel=“follow“>support</a> at 10612, that would validate the
2nd scenario and give the sellers more control and the next target
should be the support at 10311 price level. </p>

This article was written by ForexLive at

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