Last week, the Nasdaq Composite didn't move much given the lack of economic events and the Thanksgiving holidays in the final part of the week. The only two important reports were the US Jobless Claims and the US PMIs. The former beat expectations across the board, while the latter came basically in line with forecasts. This week we can expect more action with the holidays in the rear-view mirror and some key economic releases on the agenda.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite is getting closer to the cycle high at 14446. We can expect the sellers to step in around these levels targeting at least a deeper pullback after such an incredible rally for the entire month. The buyers, on the other hand, should keep piling in to target new highs until we get a bearish catalyst.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is diverging with the MACD which is generally a sing of weakening momentum often followed by pullbacks or reversals. In this case, it might be a signal that we could indeed see at least a pullback very soon. From a risk to reward perspective, the buyers would have a much better setup around the 13700 support where we can also find the 38.2% Fibonacci retracement level of the entire rally.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more clearly the divergence with the MACD which has been going on since the breakout of the key trendline around the 13700 level. The buyers should keep leaning on the lower bound of the rising channel where they have also the red 21 moving average for confluence. The sellers, on the other hand, will want to see the price breaking lower to target a drop into the 14000 level and upon a further break, the support around the 13700 level.
Upcoming Events
Tomorrow, we have the US Consumer Confidence report. On Thursday, we will see the latest US Jobless Claims figures and the US PCE report. On Friday, we conclude the week with the US ISM Manufacturing PMI which missed expectations by a big margin the last time.
