We’ve seen the Nasdaq Composite rising despite the risk of more rate hikes or even a recession. The market may be increasingly confident that the economy will be fine in the end and inflation will return back to target without too much pain. In fact, despite the fast monetary tightening, the labour market remains strong, and the hard data hasn’t showed too much weakness in the economy.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite bounced on the red 21 moving average and rallied back to test the 13863 high. If we get a clear breakout, the buyers may start to pile in even more aggressively as the fear of missing out would kick in and probably take us to the 14649 resistance.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that from a risk management perspective, the buyers would be better off waiting for the price to fall into the 13174 support where we can also find the 38.2% Fibonacci retracement level and the trendline. That would be a strong support zone and the sellers would need to break below it to get more conviction and target the next support at 12274.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor upward trendline and the red 21 moving average in the same spot. The buyers may want to step in here with a defined risk below the trendline and target the breakout and new higher highs. The sellers, on the other hand, will want to see the price breaking lower to position for a selloff into the 13174 support.
Upcoming Events
Today we have the US Jobless Claims and the ISM Services PMI, while tomorrow will be the time for the main event of the week: the US NFP report. Good data should support the market as we saw in the previous occasions, while bad data might bring back recession fears and send the market lower.
