Yesterday, the Nasdaq Composite ended the day positively due to a lack of bearish catalysts. This could have been one of those periods where no news is good news, as geopolitical fears around the Israeli-Iranian escalation subsided. It may also just be a rebound from an oversold market. Nonetheless, this week’s US PMI and PCE indexes will be catalysts for market action, and it is likely that more inflationary pressures could weigh on prices again given the Fed’s recent change in stance.
On the daily chart we can see that the Nasdaq Composite bounced yesterday near the support of 15162 and rallied to the resistance of 15453 where we can also find the blue moving average 8 for the confluence. This is where we can expect sellers to step in with a defined risk above resistance to position themselves for a fall to new lows. Buyers, on the other hand, will want to see the price move higher to invalidate the bearish setup and position for a return to the 15929 level.
On the 4-hour chart, we can see the rally towards resistance at 15453 more clearly as price rejects the blue moving average of 8. There isn’t much else to take from this chart, so we need to zoom in to see more details.
On the hourly chart we can see that we had a trendline defining bearish momentum with the red moving average 21 acting as dynamic resistance. Yesterday’s price broke through it, which could be an early signal of a change in sentiment, although we will need continuation to confirm this. In fact, if price were to fall back below the trendline, we can expect sellers to accumulate and position themselves for a fall to new lows. Conversely, should the price continue to rise, buyers will likely increase their bullish bets to resistance at 15929.
Today we have the US Flash PMIs. On Thursday we will receive first quarter US GDP and the latest US jobless claims figures. On Friday, we conclude the week with the US PCE report.
cnbctv18-forexlive
A new variant of COVID-19 is raising questions and capturing the attention of researchers as we approach fall and winter.…
OAKLAND, Calif. (KGO) -- A Stanford student is doing his part to build a better San Francisco Bay Area.He builds…
The Secret Service "acted so quickly and so decisively" to thwart an assassination attempt on former President Donald Trump at…
Crime Authorities say the man was involved in several accidents. A football game between UCLA and the University of Colorado…
Washington state lawyers will have past grocery chain mergers — and their negative consequences — in mind when they go…
Ben Affleck "couldn't keep his hands off" Jennifer Lopez during their brunch on Saturday, a source exclusively tells Page Six.…