Yesterday, the Nasdaq Composite maintained the positive mood as the index managed to make a new higher high. Traders might be positioning into a benign CPI print tomorrow or the market is just confident that we won’t see a second inflationary impulse. In any case, the price was oversold anyway, so a relief rally was in the cards.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday managed to post a new higher high with the buyers targeting a rally into new highs. There’s not much to lean onto on this timeframe but we can find some interesting levels on the lower timeframes.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is now at the red 21 moving average where we can also find the 61.8% Fibonacci retracement level for confluence. This is where the sellers are likely to step in with a defined risk above the Fibonacci level to position for a drop into the 14050 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into new highs.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that from a risk management perspective, the buyers will have a much better risk to reward setup around the 14730 swing level where we can find the confluence with the 38.2% Fibonacci retracement level and the red 21 moving average. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 14050 level.
Upcoming Events
Tomorrow we will get the latest US CPI report and the US Jobless Claims figures, while on Friday we conclude the week with the US PPI data.
