Yesterday, the Nasdaq Composite ended the day mostly flat as the market continues to remain on the backfoot waiting for the Israeli retaliation against Iran. The rising Treasury yields and the stronger US Dollar are also putting a lid on the gains. Fed Chair Powell yesterday didn’t add anything new on the monetary policy front, but he did state that if inflation were to persist, they would just hold rates steady for longer. This might give the market some relief as the bar for rate hikes is set very high.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite sold off into the first key support level at 15929 following the hot US Retail Sales and the geopolitical news. The price ranged for the entire trading session yesterday as the risk sentiment remained negative. This is where we can expect the buyers to step in with a defined risk below the low to position for a rally into a new all-time high. The sellers, on the other hand, will want to see the price breaking the low to increase the bearish bets into the next support at 15453.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price broke out of the 3-week long range and triggered more bearish momentum as the sellers piled in more aggressively to target a break below the 15929 support. After the breakout of the rising wedge, the market started to rollover from the highs and the chances of seeing a correction all the way down to the base of the pattern at 14477 increases by the day.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a trendline defining the current downward momentum where we can find the confluence of the 38.2% Fibonacci retracement level and the red 21 moving average. If we get another pullback, we can expect the sellers to step in around the trendline with a defined risk above it to position for new lows. Alternatively, the sellers can wait for the price to break the low to increase the bearish bets into new lows. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into a new all-time high.
Upcoming Events
This week is a bit empty on the data front with just one notable report left tomorrow as we get the latest US Jobless Claims figures.
