On the daily chart below for the Nasdaq, we can
see that the price action is tentative trading into the key resistance at 12274. The sellers are likely
waiting there, ready to defend the level with little risk above and big reward
in case the market resumes the main bearish trend.

The moving
averages are acting as support for the buyers at the moment and keep the bullish
trend intact. The breakout of the bullish
flag might ultimately lead to an extension to the 13186 resistance but the
buyers need to break with conviction above the 12274 level first.

Nasdaq technical analysis

On the 4 hour chart below, we can
see that the moving averages have converged as the price action has become
rangebound. Last Friday the buyers haven’t got any help from the economic data
as retail
sales missed across the board, Fed’s
Waller delivered hawkish comments and the 1
year inflation expectations in the University of Michigan survey showed a big
jump to the upside.

On the 1 hour chart below, we can
see more closely the current range created just below the key resistance. In
such instances, it’s best to just stay out and wait for the price to break on
either side supported by a fundamental catalyst and go with the flow. But one
can also “play the range” selling at resistance and buying at support. The next
economic data to watch are the US Jobless
Claims on Thursday and US PMIs on Friday.

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