Nasdaq Composite Analysis
The Nasdaq Composite opened the week as expected with a small bounce as the risk sentiment improved given no escalation on the radar and limited operations inside Gaza. The calendar yesterday was empty, so there wasn’t anything that could impact the market on the data side. Looking forward, we will get many important economic releases starting today with the consumer confidence and wages data.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday pulled back right into the broken bottom trendline and the blue 8 moving average. This is where we can expect the sellers to step in with a defined risk above the trendline to position for a drop into the 12274 support. The buyers, on the other hand, will want to see the price breaking above the trendline to increase the bullish bets and start targeting the 13174 resistance.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is now at a crucial resistance zone where we can find the confluence with the minor downward trendline and the Fibonacci retracement levels. This will likely be a “break it or make it” moment for the index.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the bearish setup with the resistance zone highlighted by the blue box. More conservative sellers may want to wait for the price to break below the counter-trendline before joining an eventual selloff, but the risk to reward would be worse at that point. If the price breaks above the resistance though, the bearish setup would be invalidated, and the buyers will gain more conviction to target the 13174 level.
Upcoming Events
This week, we will get lots of tier one data points with the US labour market and the FOMC decision in focus. Today, we have the US Employment Cost Index and the Consumer Confidence report. Tomorrow, it will be the time for the US ADP, the ISM Manufacturing PMI, the US Job Openings data and the FOMC rate decision. On Thursday we will get the US Jobless Claims data, while on Friday we conclude the week with the US NFP report and the ISM Services PMI.