Last Friday, the Nasdaq Composite sold off into the close as we got risk off flows across the board due to news of imminent Iranian retaliation. Over the weekend, Iran launched its operation with drones and missiles against Israel but almost all of them were intercepted and there were no casualties. In the end, Iran said that the operation was deemed concluded and we got reports of general de-escalation with the US telling Israel that it won't support a retaliation. We might see some positive risk sentiment and probably gap up with the economic data being in focus next.
Nasdaq Composite Technical Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite has been consolidating around the 16206 level for over a month and despite some bearish catalysts like another hot US CPI and the risk off flows, the price couldn’t make a new low. This could be a signal that the market is more likely to break to the upside and print new all-time highs, although we will need to see a breakout first to confirm it.
Nasdaq Composite Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price has been ranging between the 16090 support and the 16480 resistance. The market participants keep playing the range by buying at support and selling at resistance, awaiting a breakout on either side to give an indication for the next big move.
Nasdaq Composite Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more closely the rangebound price action inside the blue box with no clear signal for the next move until we get a breakout on either side.
Upcoming Events
This week is a bit empty on the data front with just two notable reports. Today we have the Retail Sales data while on Thursday we get the latest US Jobless Claims figures.
