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.
