Yesterday, the Nasdaq Composite ended another day negative with the buyers struggling to find some footing. It could have been a mix of hawkish Fed’s Williams comments where he didn’t rule out a rate hike if the data called for such a move, and some jitteriness due to some rumours of an Israeli retaliation in the following 24/48 hours. Tonight, Israel did retaliate as it carried out airstrikes on Iran, but eventually it was seen as a limited retaliation with even Iran downplaying it. This might finally put this thing behind our backs, and we could see some positive risk sentiment today.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite is now getting very close to the key 15453 level. We can also notice that the price got a bit overstretched as depicted by the distance from the blue 8 moving average. In such instances, we can generally see a pullback into the moving average or some consolidation before the next move.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price got overstretched on this timeframe as well. If we were to get a final push into the 15453 level, we can expect the buyers to step in with a defined risk below it to position for a rally back into the 15929 level. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the next support at 15162.
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 red 21 moving average for confluence. 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. The buyers, on the other hand, will want to see the price breaking higher to pile in and position for a rally into the 15929 level.
