ECHNICAL ANALYSIS
On the daily chart Nasdaq Composite's consolidation around the crucial swing level of 14155 after a surge prompted by the US CPI report miss. The rally appears stretched, evident in the considerable distance from the blue 8 moving average. Typically, such scenarios precede a pullback towards the moving average or a period of consolidation before the next market move.
Zooming in on the 4-hour chart, the price is currently resting on the upward trendline. This juncture often attracts buyers, who are likely to intervene with a defined risk below the trendline, positioning themselves for a potential breakthrough above the swing level with a target at the 14650 high. Conversely, sellers would prefer to witness a price breakdown, positioning themselves for a descent back to the key support around the 13700 level.
The 1-hour chart unveils price divergence with the MACD at a critical resistance point. Such a divergence often signifies weakening momentum, frequently followed by pullbacks or reversals. In this instance, it serves as a potential indication of a deeper pullback into the 13700 support. However, a decisive breakout in either direction should provide clarity and determine the market's next definitive move.
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