Nasdaq Technical Analysis: Bullish Trend Continues Amid Risk-On Sentiment
The Nasdaq has been experiencing a bullish trend in recent days, with positive news on the inflation front and a more dovish stance from the Federal Reserve contributing to the market optimism. Last week’s US Jobless Claims data helped alleviate concerns about the labor market, following a weak Non-Farm Payrolls (NFP) report. The fears of a “growth scare” triggered by the poor ISM Manufacturing Purchasing Managers’ Index (PMI) and weak NFP report seem to be subsiding, as investors focus on more positive economic indicators.
Nasdaq Technical Analysis – Daily Timeframe
On the daily chart, the Nasdaq recently broke above a key trendline around the 19000 level, signaling a potential for further gains. This breakout should give buyers more confidence to push the market to new highs, while sellers may look for a retest of the trendline to regain control. If the price falls back below the trendline, a drop towards the 17500 level could be in play.
Nasdaq Technical Analysis – 4 hour Timeframe
Looking at the 4-hour chart, a support zone around the 18800 level has been identified, where bearish momentum increased on the way down and bullish momentum on the way up. If the price retraces back to this support zone, buyers may step in with a defined risk below the zone to target a rally towards the 19727 level. Conversely, sellers will be eyeing a break below this support zone to target a drop towards 17500.
Nasdaq Technical Analysis – 1 hour Timeframe
On the 1-hour chart, a minor upward trendline is guiding the current bullish momentum. Buyers are likely to rely on this trendline to push for new highs, while sellers will be looking for a break below to target a drop towards the 18800 support level. Understanding the market dynamics on various timeframes can help traders make informed decisions based on the prevailing trends.
As we look ahead, upcoming catalysts such as the US Retail Sales and Jobless Claims figures today, followed by the University of Michigan Consumer Sentiment survey tomorrow, could provide further insights into the market sentiment and potential direction of the Nasdaq.
In conclusion, the Nasdaq’s bullish trend continues amid a risk-on sentiment, supported by positive economic data and a more accommodative stance from the Federal Reserve. Traders and investors should carefully monitor key technical levels and upcoming catalysts to navigate the market effectively and capitalize on potential opportunities in the current market environment.
