Nasdaq Composite Technical Analysis | Forexlive

Yesterday, the Nasdaq Composite extended the drop
into new lows despite a lack of bearish catalysts. In fact, we had pretty much
a down day for most markets with selloffs in the US Dollar, Treasury yields and
some commodities. On the geopolitical front, not much has changed as the Israeli
retaliation continues to be delayed and it’s not even sure if they will strike
at all now.

On the macro side, the market has priced out almost all the rate
cuts in 2024 as it expects just one cut later in the year. On the data front,
we don’t have much to work on in the next couple of weeks except the PCE, which
the Fed has already indicated to be slightly higher but mostly unchanged.

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.

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