Nasdaq Composite Technical Analysis | Forexlive

The Nasdaq Composite this week held into last
week’s gains as the lack of economic releases and the Thanksgiving Day holiday
contributed to a steady risk sentiment. On the data front, the US Jobless Claims on
Wednesday beat expectations across the board, which is a good thing for the
market at the moment given some recession fears, although one beat after a
series of misses doesn’t change the trend. Today, all eyes will be on the US
PMIs, but given the early closure for Black Friday we might not see much
movement, unless the data surprises.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq Composite
is now close to the cycle high at 14446 after an incredible rally that erased 3
months of decline is less than a month. This rally seems to be based more on
FOMO rather than a strong fundamental driver. We can expect the buyers to start
taking some profits off the table around these levels which could finally offer
a decent pullback.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price is diverging with the
MACD which is
generally a sing of weakening momentum often followed by pullbacks or
reversals. In this case, it might be a hint that we could indeed see at least a
pullback very soon.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the divergence with the MACD which has been going on since the breakout
of the key trendline around
the 13700 level. The buyers should keep leaning on the lower bound of the
rising channel where they have also the red 21 moving average for confluence. The
sellers, on the other hand, will want to see the price breaking lower to target
a drop into the 14000 level and upon a further break, the support around
the 13700 level.