Last Friday, the Nasdaq Composite rallied following the big beat in the NFP report as the market continues to bet on the soft-landing scenario. Yesterday, the index opened lower following the outbreak of the war in Israel but bounced back soon after and closed higher as the events in the Middle East are unlikely to weigh on global markets as long as the conflict remains confined to the Levant.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite continues to charge higher after bouncing on the support zone around the 13174 level and breaking out of the consolidation. The target for the buyers now should be the black downward trendline around the 13800 level where we will likely find strong sellers again.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see the breakout of the consolidation with the price rallying above the resistance defined by the 38.2% Fibonacci retracement level. We might now see a pullback around the minor downward trendline as the sellers are likely to lean on it to position for another selloff into the 12274 support. A break above the trendline should increase the bullish momentum as the buyers are likely to pile in even more aggressively to target the major downward trendline.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the Nasdaq Composite opened lower yesterday due to some risk aversion following the outbreak of the war in Israel. The price bounced on the broken resistance turned support and continued higher towards the trendline. If we get another pullback from the trendline, we can expect the buyers to step in again around the 13300 support with a better risk to reward setup and target the major trendline around the 13800 level.
Upcoming Events
This week the market is likely to focus on the CPI report as that’s what might change the expectations around the next FOMC rate decision. Tomorrow, we will see the US PPI data and later in the day the FOMC Meeting Minutes. On Thursday, it will be the time for the US CPI report, and at the same time we will also get the latest Jobless Claims figures. On Friday we conclude the week with the University of Michigan Consumer Sentiment report.
