Nasdaq Composite Technical Analysis – “Make it or break it” moment

After the strong selloff following the more hawkish
than expected FOMC dot plot, the Nasdaq Composite is now taking a breather just
around a key level. On the fundamental side nothing’s changed this week other
than another very strong Jobless Claims report
yesterday that points to a tight labour market, which is not what the Fed wants
to see as it might put upward pressure on wage growth and make it harder to
achieve the inflation target.

Nasdaq Composite
Technical Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite pulled back into the support turned resistance and what
happens next will be key for the market. This is where we can expect the
sellers to start positioning more aggressively into the 12274 support, while
the buyers will want to see a break to the upside to invalidate the bearish
setup and target new highs.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more closely that
the price is in a kind of a limbo. The red 21 moving average is
likely to act as dynamic resistance if the price spikes higher, but overall we
should see more upside if the Nasdaq Composite continues to trade above the
resistance and more downside if it falls back below it.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price has been diverging with
the MACD which
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we got a pullback into the resistance zone where we can
find the trendline and
the 38.2% Fibonacci
level for confluence. This
is where the sellers should step in with a defined risk above the trendline and
target the 12274 support. The buyers, on the other hand, will want to see the
price breaking above the trendline to pile in and target new highs.


Today the only notable release will be the US PCE
report. The data is unlikely to change anything for the market unless we get
some big surprises.

This article was written by FL Contributors at Source