On the daily chart below for the Nasdaq Composite, we can see that after bouncing on the 61.8% Fibonacci retracement level, the market started a stron
On the daily chart below for the Nasdaq
Composite, we can see that after bouncing on the 61.8% Fibonacci
retracement level, the market started a strong rally towards
the key 12274 resistance.
The break of the trendline of the bullish flag is also another confirmation
that the buyers are in control and want to extend the rally possibly above the
key resistance. The moving
averages have crossed to the upside on the flag breakout and the trend now is
firmly upwards. As the market now returns to the regular trading regime after
the Easter Holidays, we may see the buyers trying a breakout again.
On the 4 hour chart below, we can
see that after the rally stalled near the 12274 resistance and pulled back, it
found support at the red long period moving average. The buyers piled in there
and looks like the rally is restarting.
The NFP
report is also being interpreted as goldilocks since the jobs market remains
strong but the wage inflation keeps on moderating. The next big event is the US CPI report tomorrow where we may see
another big rally if the data misses expectations.
On the 1 hour chart below, we can
see that there’s a mini range between the 12100 resistance and the 50%
Fibonacci retracement level at 11915. For the buyers a break above the resistance
should give the conviction to target the 12274 level. On the other hand, the
sellers are likely to jump onboard in case the price falls below the 11915
support and then target the previous swing low at 11650.
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