Nasdaq Composite Technical Analysis – Bulls need to watch out for these levels

<p>Last Friday, the Nasdaq Composite rallied following
the big beat in the <a href="https://www.forexlive.com/news/us-september-non-farm-payrolls-336k-vs-170k-expected-20231006/">NFP</a> report as
the market continues to bet on the soft-landing scenario. Yesterday, the index
opened lower following the <a href="https://www.forexlive.com/news/as-the-scope-of-hamas-attacks-come-into-view-the-middle-east-future-grows-murky-20231008/">outbreak of the war in Israel</a> but
bounced back soon after and closed higher as the events in the Middle East are
unlikely to weigh on global markets as long as the conflict remains confined to
the Levant. </p><p>Nasdaq Composite Technical
Analysis – Daily Timeframe</p><p>On the daily chart, we can see that the Nasdaq
Composite continues to charge higher after bouncing on the <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">support</a> zone
around the 13174 level and breaking out of the consolidation. The target for
the buyers now should be the black downward <a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a> around
the 13800 level where we will likely find strong sellers again. </p><p>Nasdaq Composite Technical
Analysis – 4 hour Timeframe</p><p>On the 4 hour chart, we can see the breakout of the
consolidation with the price rallying above the resistance defined by the 38.2%
<a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a> level.
We might now see a pullback around the minor downward trendline as the sellers
are likely to lean on it to position for another selloff into the 12274
support. A break above the trendline should increase the bullish momentum as the
buyers are likely to pile in even more aggressively to target the major
downward trendline. </p><p>Nasdaq Composite Technical
Analysis – 1 hour Timeframe</p><p>On the 1 hour chart, we can see that the
Nasdaq Composite opened lower yesterday due to some risk aversion following the
outbreak of the war in Israel. The price bounced on the broken <a href="https://www.forexlive.com/Education/technical-analysis-polarity-20220408/">resistance turned
support</a> and continued higher towards the trendline. If we get
another pullback from the trendline, we can expect the buyers to step in again
around the 13300 support with a better risk to reward setup and target the
major trendline around the 13800 level. </p><p>Upcoming
Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">This week</a> the market is likely to focus on the CPI
report as that’s what might change the expectations around the next FOMC rate
decision. Today, we will see the US PPI data and later in the day the FOMC
Meeting Minutes. Tomorrow, it will be the time for the US CPI report, and at
the same time we will also get the latest Jobless Claims figures. On Friday we conclude
the week with the University of Michigan Consumer Sentiment report.</p>

This article was written by FL Contributors at www.forexlive.com.