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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