Last Friday, the Nasdaq Composite ended the day positive following the US NFP report. In fact, the data beat expectations across the board, showing once again that the labor market remains resilient without much inflationary pressure as wage growth continues to slow. The focus will now be on US CPI data on Wednesday, as a hot report could change the Fed’s near-term strategy and further delay rate cuts.
Nasdaq Composite Technical Analysis – Daily Timeline
Nasdaq Composite Daily
On the daily chart, we can see that the Nasdaq Composite has been diverging with the MACD for a long time. This is usually a sign of weakening momentum, often followed by pullbacks or reversals. The price recently broke out of the ascending wedge, which opened the door for a bigger correction towards the 14477 level. The price has been consolidating around the highs for a while now and we will likely have to wait for the US CPI report Wednesday to decide where to go next.
Nasdaq Composite Technical Analysis – 4 Hour Timeframe
Nasdaq Composite 4 hours
On the 4-hour chart we can see that the price rebounded last Friday following the Goldilocks NFP report and is now trading above the critical level of 16206. Should the price continue to decline and fall back Below the 16,206 level, we can expect sellers to move more aggressively to extend the decline to the first support level at 15,929. This is also where we can expect this as buyers step in with defined risk below support to position themselves for a rally to a new all-time high.
Nasdaq Composite Technical Analysis – 1 Hour Timeframe
Nasdaq Composite 1 hour
On the hourly chart, we can take a closer look at the recent price action, with price being rejected several times from the black counter-trend line, with the exception of the counterfeit on the 4th.th From April. We can also notice that the last lower leg has diverged with the MACD, which could give buyers additional conviction for further upside. In fact, if price were to break above the counter-trend line, we can expect buyers to increase their bullish bets to reach new highs, while sellers will likely rely on the trend line for positioning. with a view to falling to new lows with better risk. to reward the setup.
Events to come
This week is going to be a little quieter on the data side, with US CPI being the main highlight. On Wednesday we will have the US CPI report which will likely decide whether the Fed will further delay rate cuts. On Thursday we will receive the US PPI and the latest US jobless claims figures. Finally, on Friday we wrap up the week with the University of Michigan Consumer Sentiment Survey.
cnbctv18-forexlive
