Fundamental Overview
The Nasdaq has been on a steady rise ever since the last week’s US Jobless Claims as the data quelled the fears around the labour market following the weak NFP report. The “growth scare” triggered by the ugly ISM Manufacturing PMI and the weak NFP report looks to be behind us for now.
This week we got some more positive news on the inflation front as the US PPI surprised to the downside and the US CPI yesterday showed some more easing. That should be good news as the Fed will likely be even more dovish from now on and the chances of three rate cuts by year-end solidify.
Nasdaq Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq broke above the key trendline around the 19000 level this week. This should give the buyers a bit more confidence to increase the bullish bets into new highs. The sellers, on the other hand, will want to see the price falling back below the trendline to regain some control and position for a drop into the 17500 level.
Nasdaq Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a notable support zone around the 18800 level which saw the bearish momentum increasing on the way down and the bullish momentum increasing on the way up.
If the price were to fall back into the support zone, we can expect the buyers to step in with a defined risk below the zone to position for a rally into the 19727 level. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the 17500 level.
Nasdaq Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor upward trendline defining the current bullish momentum. The buyers will likely keep on leaning on the trendline to position for new highs, while the sellers will want to see the price breaking lower to target a drop into the 18800 support. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the US Retail Sales and Jobless Claims figures. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment survey.
