Yesterday, the Nasdaq Composite finished another day basically flat as the lack of catalysts and the holiday-shortened week led to a rangebound price action. Today we get the US PCE report and some time later we will have Fed Chair Powell speaking. Both shouldn’t offer any surprises as the PCE figures generally come in line with expectations and Powell is unlikely to say anything different from his press conference. As a reminder, today the market is closed for Good Friday holiday, so if we do get a surprising PCE release, it will be traded when the market reopens on Monday.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite has been diverging with the MACD for a long time. This is generally a sign of weakening momentum often followed by pullbacks or reversals. We continue to trade inside the rising wedge, and it’s worth to keep an eye on it because if the price were to break below the trendline, the sellers will have much more conviction to look for new lows with the base of the wedge at 14477 being the ultimate target.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price bounced near the bottom trendline recently where we had the confluence of the red 21 moving average and the 50% Fibonacci retracement level. The buyers keep on stepping in with a defined risk below the trendline to position for a rally into a new all-time high. The sellers, on the other hand, will want to wait for the price to break below the trendline before considering short positions.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the recent price action with the price consolidating around the major trendline. We can also see that we have now a black counter-trendline. The buyers will want to see the price breaking above the counter-trendline to gain even more conviction and increase the bullish bets into a new all-time high.
