Yesterday, the Nasdaq Composite opened higher following the strong Nvidia earnings release the prior day. Moreover, we got again some strong US data as the US Jobless Claims beat expectations and the US PMIs continued to point to a resilient economy. At the moment, there’s no bearish catalyst in sight, so we will likely see some more upside for the stock market and possibly a new all-time high in the next few days.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite yesterday opened much higher than the previous close as Nvidia earnings after the close pushed the market to new highs. The index is now very close to the all-time high and we can expect the buyers to keep bidding the price into the key level targeting a breakout. The sellers, on the other hand, might step in around the all-time high with a defined risk above it to position for a break below the trendline and even lower prices afterwards.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more closely yesterday’s big jump with the price now less than 1% away from the all-time high. There’s not much else to glean from this chart so we need to zoom in to see some more details.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have now a support zone around the 15900 level. If we were to get a pullback, we can expect the buyers to pile in there with a defined risk below the zone to position for another rally into new highs. The sellers, on the other hand, can only wait for a break below the major trendline before considering new positions.
