Despite the strength in the US data this week and another beat in Jobless Claims yesterday, the Nasdaq Composite didn’t sell off like we saw in the past week. The index is hovering around a key support level and it looks like the soft landing vibes might be returning now that the hangover from the more hawkish than expected FOMC dot plot might be in the rear view mirror.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite continues to consolidate around the key support at 13174. It’s all bout having the patience to wait for a clear breakout with the target on the upside standing at the downward trendline around the 13800 level and on the downside at the 12274 support.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the recent rally got rejected from the red 21 moving average and the 38.2% Fibonacci retracement level. The lack of a follow through from the rejection, and the consolidation around the support level might be a signal that the Nasdaq Composite could be about to start a correction to the upside.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely that we have a clear range between the low around the 12965 level and the resistance at the 38.2% Fibonacci retracement level. In such instances, the best strategy may be to wait for a clear breakout and go with the flow, but one can also “play the range” by selling at resistance and buying at support.
Upcoming Events
Today it’s all about the NFP report which is the only one the Fed will see before its next rate decision. The US jobs data going into the NFP was strong, so the expectations might be skewed to the upside.
