ending the day negative as the market continues to consolidate awaiting better
levels where to trade from and new information to price in. We are now near a
key support zone and what happens here will be crucial especially if the data
continues to surprise to the upside and Fed members continue to push back rate
cuts. The path of least resistance remains to the upside but watch out for a
breakout of the support as that could lead to profit taking and a wave of
bearish bets.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite has
been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. We continue to trade inside the rising wedge, so if
the price were to break below the trendline, the
sellers will have much more conviction to look for new lows with the base of
the wedge at 14477 being the ultimate target.
Nasdaq Composite
Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the
price is near the bottom trendline where we can also find the confluence of the
red 21 moving average and
the 50% Fibonacci
retracement level. This is where we can expect the
buyers to step in with a defined risk below the trendline to position for a
rally into a new all-time high. The sellers, on the other hand, will want to
see the price breaking lower to position for a drop into new lows with the
15937 level as the first target.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more
closely the recent price action and the bullish setup around the trendline.
What happens here will likely decide where the market will go in the next few
weeks as a bounce should lead to new highs and a break trigger a selloff.
Upcoming
Events
Today we have Fed’s Waller speaking. Tomorrow, we
get the latest US Jobless Claims figures, while on Friday we conclude with the
US PCE report and Fed Chair Powell.
This article was written by FL Contributors at www.forexlive.com.