Yesterday, the Nasdaq Composite bounced around a key support zone helped by the release of the US PCE report where the data came in line with expectations. The market might have feared a higher reading but as soon as it saw that it wasn’t the case, the buyers piled in aggressively to target new highs. Today the only notable event will be the release of the US ISM Manufacturing PMI. Good news have been good news for the market, so we can expect the same reaction to the PMI figures.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite bounced around the key support zone around the trendline where we had also the blue 8 moving average for confluence. The target should now be the all-time high at 16206, although the buyers will definitely try to set a new record high. The sellers, on the other hand, will likely step in around the all-time high with a defined risk above it to position for a break of the trendline.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price has been diverging with the MACD for a long time. This is generally a sign of weakening momentum often followed by pullbacks or reversals. We can also notice that we might have formed a rising wedge right at the all-time high. It will be important for the buyers to break out into new highs as a break below the bottom trendline could trigger a selloff into the base of the wedge at 14477.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action with the price yesterday bouncing around the 15900 support zone and extending the rally into the recent highs. Watch out for the data today as it will act as a catalyst for the next move.
