On the daily Nasdaq chart below, we
can see that after breaking out of the bull
flag, the market has rallied towards the key resistance level at 12274. The buyers will
want to see a clear break above it to start targeting the next resistance at
13186. The moving
averages are crossed to the upside, so the trend remains bullish and the buyers
are in control.

As long as the US data doesn’t
come out ugly, the buyers seem to be comfortable charging higher. Today we will
see the US ISM Service PMI and it’s a key economic
indicator for the services sector which remained resilient despite the
aggressive tightening and the recession fears.

Nasdaq
Technical Analysis

On the 4 hour chart below, we can
see that we have a trendline now that will be used as a
support for the buyers. If we get a pullback here, the price is likely to
retrace back to the trendline where there is also the red long period moving
average for confluence. The buyers are likely to pile
in there, while the sellers will want to see the price breaking below the trendline
to jump onboard and target the support at 11492.

On the 1 hour chart below, we can
see that the 12014 level is indeed a strong support for the buyers. Not only we
will have the trendline and the 4 hour long period moving average, but also the
38.2% Fibonacci
retracement level. What happens at this level is likely to
decide the next big move. A bounce should bring us to the 12274 resistance if
not higher and a breakout should lead to a selloff back to the 11492
support.

This article was written by ForexLive at www.forexlive.com.