Yesterday,
the Nasdaq Composite finished the day around the all-time high as the market
opened higher and continued to rally for most of the trading session. There was
no real catalyst for the move, so it could just have been dip-buyers entering
the market to fade the losses from the prior days. Today, we have the US NFP report on the agenda where
we will see if the labour market remains resilient or there is more weakness
under the hood.

Nasdaq Composite Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq
Composite bounced on the red 21 moving average and
managed to rally back above the trendline and
eventually reached the all-time high again. This is where we can expect the
sellers to step in again with a defined risk above the high to position for a
break below the trendline and target the 15453 level. The buyers, on the other
hand, will want to see the price breaking higher to increase the bullish bets
into new highs.

Nasdaq Composite Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price 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 can also notice that the price action formed a rising wedge, so if
the price breaks 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 – 1 hour Timeframe

On the 1 hour chart, we can see that if
the price were to pull back from the high, the buyers will find a strong support zone
around the 16140 level where we can find the confluence of the
major trendline, the minor black trendline, the 50% Fibonacci
retracement level and the red 21 moving average. The
sellers, on the other hand, will want to see the price breaking lower to
invalidate the bullish setup and increase the bearish bets into new lows.