Nasdaq Composite Analysis
The Nasdaq Composite opened the week as expected with a slight rebound as risk sentiment improved given the lack of escalation on the radar and limited operations inside Gaza. Yesterday the calendar was empty, so there was nothing that could impact the market on the data side. Looking ahead, we will receive many important economic releases today with data on consumer confidence and wages.
Nasdaq Composite Technical Analysis – Daily Timeline
On the daily chart we can see that the Nasdaq Composite yesterday moved back directly into the broken lower trendline and the blue 8 moving average. This is where we can expect sellers to step in with defined risk above the trendline to position for a decline towards support 12274. Buyers, on the other hand, will want to see price break above the trendline to increase bullish bets and start targeting resistance at 13174 .
Nasdaq Composite Technical Analysis – 4 Hour Timeframe
On the 4-hour chart, we can see that the price is now within a crucial resistance zone where the confluence with the minor downtrend line and Fibonacci retracement levels can be found. This will likely be a “break or make it” moment for the index.
Nasdaq Composite Technical Analysis – 1 Hour Timeframe
On the hourly chart we can take a closer look at the bearish pattern with the resistance zone highlighted by the blue box. More conservative sellers may want to wait until price falls below the countertrend line before joining a possible selloff, but the risk of reward would then be worse. If price breaks above resistance, the bearish pattern would be invalidated and buyers would gain conviction to target the 13174 level.
Events to come
This week we will get a lot of top-level data on the US labor market and the FOMC decision. Today we have the US Job Cost Index and the Consumer Confidence Report. Tomorrow it’s time for US ADP, ISM Manufacturing PMI, US job openings data and the FOMC rate decision. On Thursday we will have the data on US jobless claims, while on Friday we will conclude the week with the US NFP report and the ISM Services PMI.