Nasdaq Composite Technical Analysis – Lack of bearish drivers retains the development intact

Fundamental
Overview

The Nasdaq Composite maintained
its upward trajectory following lower than expected US inflation figures and
strong US activity data. This positive growth impulse without concerning
inflation developments (as of now) is keeping the upside intact given the lack
of bearish drivers.

Looking ahead, we have the
August 1 tariff deadline that might keep the markets more on the defensive, but
it certainly wouldn’t be the first time that Trump postpones a deadline or
tones down his threats. So, the probabilities are more skewed for positive
outcomes.

The risks ahead include
another growth scare from tariffs or a more hawkish repricing in interest rates
expectations. In the bigger picture though, given that the Fed’s reaction
function remains to either wait more or cut, the market should eventually get
back to its upward trend.

Nasdaq Composite Technical Analysis – Daily Timeframe

On the daily chart, we can
see that the Nasdaq Composite has been printing all-time highs consistently given
the lack of bearish drivers. From a risk management perspective, the buyers
will have a better risk to reward setup around the previous all-time high at
20,202 where we can also find a trendline
for confluence.
The sellers, on the other hand, will want to see the price breaking lower to increase
the bearish bets into the 19,200 level next.

Nasdaq Composite Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that the price is trading inside a rising channel. The buyers continue to
lean on the lower bound of the channel to keep pushing into new highs, while
the sellers are leaning on the upper bound to position for a breakout to the
downside and a deeper pullback into the 20,202 level.

Nasdaq Composite Technical Analysis – 1 hour Timeframe

On the 1 hour chart, there’s
not much else we can add here as the buyers will continue to lean on the lower
bound to target new highs, while the sellers will look for a break lower to open
the door for a bigger pullback.

Upcoming
Catalysts

Tomorrow we get the latest US Jobless Claims
figures and the Flash US PMIs.

This article was written by Giuseppe Dellamotta at investinglive.com.