Yesterday, the Nasdaq Composite closed the day around the highs once again as the market continues to consolidate ahead of the US CPI report next Tuesday. It feels like the bulls are more cautious now trading into the event following the big jump in the prices paid index in the ISM Services PMI report. This might not lead to further rate hikes, but it can delay rate cuts if inflation reaccelerates, or it gets stuck above the Fed’s 2% target.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday closed the day once again around the highs as the buyers continue to push towards a breakout but with more caution. The sellers, on the other hand, should continue to step in around the recent high with a defined risk above the level to position for a drop into the trendline targeting a break below it.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price continues to be supported by the red 21 moving average as the buyers keep on leaning on it. Such series of higher lows into a resistance generally leads to a breakout at some point, so it will be something to watch out for carefully.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action with the price ranging between the 15634 high and the 15400 support zone. There’s not much to do here other than waiting for the price to reach or break the key levels.
Upcoming Events
This week is basically empty on the data front with just the US Jobless Claims figures tomorrow as the only notable release where the market will want to see if the resilience in the labour market remains intact.
