Nasdaq Composite Technical Analysis – The bears remain in control

Yesterday we got another negative day for the
Nasdaq Composite as the sellers continue to remain in control. The most likely
culprit might have been another big miss in the US Continuing Claims figures
which is signalling that the labour market is indeed softening and this might
accelerate in the next few months. Moreover, we continue to have the risk of
the ground invasion in Gaza over the weekend, so the buyers might not want to
hold long positions into the weekend.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the
daily chart, we can see that the Nasdaq Composite yesterday opened below the
bottom trendline and
continued lower as the sellers increased their bearish bets and the buyers
folded. There’s no support now
until the 12274 level, which is the target for the sellers at the moment.
That’s where we can expect the buyers to step in with a defined risk below the
level to position for a rally back to the 13174 resistance.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more closely the
yesterday’s selloff. The price is now a bit overstretched to the downside as
depicted by the distance from the blue 8 moving average. In such
instances, we can usually see a pullback into the moving average or some
consolidation before the next move.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
now have a good resistance zone around the broken trendline where we can find
the confluence with
the downward trendline, the red 21 moving average and the 38.2% Fibonacci
level. This is where we can expect the
sellers to step in again if we get a pullback. The buyers, on the other hand,
will want to see the price breaking above the trendline to invalidate the
bearish setup and position for a rally into the 13174 resistance.


Today we will get the US PCE report, which is not
expected to change anything for the Fed at this point in time.

This article was written by FL Contributors at

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