Yesterday,
the Nasdaq Composite erased the CPI drop and
rallied back to the cycle highs. This move came despite the market pricing in
less rate cuts than the Fed’s Dot Plot and with some investment banks looking
for just one cut in 2024. The market seems to be confirming that as long as the
economy remains resilient and we don’t get extra hikes, we can keep on climbing
to new highs.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite has
been consolidating around the 16206 level for over a month and despite another
hot US CPI, the price couldn’t make new lows. This could be a signal that the
market is more likely to break to the upside and print new all-time highs.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that
the price rallied back to the cycle highs yesterday with the market threatening
a breakout. The sellers might try one last time to step in here with a defined
risk above the highs to position for a drop into the 15929 level. The buyers,
on the other hand, will want to see the price breaking higher to increase the
bullish bets into new highs.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the
price yesterday broke above the counter-trendline and
triggered a stronger rally as the buyers piled in more aggressively into new
highs. From a risk management perspective, the buyers will have a better risk
to reward setup around the 16340 level where they will find the confluence of the
blue 8 moving average and
the 38.2% Fibonacci
retracement level. The sellers, on the other hand,
will want to see the price breaking lower to increase the bearish bets into the
15929 level.
Upcoming
Events
Today we conclude the week with the University of
Michigan Consumer Sentiment survey.
This article was written by FL Contributors at www.forexlive.com.
