Nasdaq Composite Technical Analysis – Watch these key levels

The miss in the ADP report
yesterday gave the market a bit of relief after a series of strong economic
data like Jobless Claims, ISM Manufacturing PMI and Job Openings. The ISM services PMI has also
printed bang on expectations, and coupled with the other reports, supports the
soft-landing narrative. Moreover, the market was also helped by the fall in
Treasury yields and Oil prices which might calm the fears of another
inflationary wave. Today, we got another beat in Jobless
Claims data and at this point it’s going to be interesting to see if the market
takes it as a good sign for a soft landing scenario or starts to fear again more rate hikes.
Technically, we are also around key levels and the selloff after the more
hawkish than expected FOMC dot plot might
need at least a correction.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite bounced again yesterday following the miss in the ADP report and
avoided a complete breakdown. The price is consolidating around the 13174 support zone and
it’s now about having the patience to wait for a breakout.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that yesterday’s
bounce might have formed a double bottom around
the support zone which would be a nice bullish signal. The red 21 moving average is still
acting as dynamic resistance but the real level to break for the buyers is the
38.2% Fibonacci retracement level.
In fact, a break above that level would open the door for a rally into the trendline around
the 13800 level. We can expect the sellers to step in around the Fibonacci
resistance to defend the level and position for a break below the support.

Nasdaq Composite Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the range created between the 13355 resistance and the 13000 support. A
break to the upside should lead to a rally into the 13800 level while a break
to the downside is likely to see a selloff into the 12274 level.

Upcoming
Events

Tomorrow we have the NFP report which is going to be a
market mover and the only one the Fed will see before its next rate decision.