around the highs thanks to another slate of positive economic data as the US Q4 GDP
surprised to the upside and the inflation details were better than expected.
The US Jobless Claims, on the
other hand, missed expectations across the board but they are still around
cycle lows and given the volatility of the data, the market might need some
bigger misses before starting to get worried. Today we conclude the
week with the US PCE report, where the market expects the disinflationary trend
to remain intact and keep on supporting the soft-landing narrative.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite
yesterday managed to close around the highs following strong economic data and
falling Treasury yields. From a risk management perspective though, the buyers
will have a much better risk to reward setup around the previous high at 15150
where they will also find the confluence with the
red 21 moving average, the trendline and the 38.2%
Fibonacci retracement level.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the
bullish setup around the previous high at the 15150 level. If the price were to
break below the level, then we can expect the sellers to extend the drop into
the trendline where the buyers will have another opportunity to go long. The divergence with the
MACD, which
is generally a sign of weakening momentum, suggests that a pullback into the
15150 level is very likely.
Nasdaq Composite
Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more
closely the recent price action with the price yesterday bouncing on the most
recent swing high level and the red 21 moving average. The buyers leant on this
support to position for another rally, but if the price were to break lower in
the next few days, then we can expect the sellers to pile in to target a drop
into the 15150 zone.
This article was written by FL Contributors at www.forexlive.com.