Nasdaq Technical Analysis - The bullish bias remains intact

[forex4you]

Nasdaq Technical Analysis - The bullish bias remains intact

Fundamental
        Overview

The Nasdaq is slowly
    crawling back to the all-time high. The market continues to look forward to the
    next year with Trump's policies being a positive driver for growth.

The only bearish reason we
    had for the stock market was the rise in Treasury yields. That's generally
    bearish only when the Fed is tightening policy though not when yields rise on
    positive growth expectations.

Right now, the Fed's
    reaction function is that a strong economy would warrant an earlier pause in
    the easing cycle and not a tightening. That should still be supportive for the
    stock market in the bigger picture.

If the Fed's reaction
    function were to change to a potential tightening, then that will likely
    trigger a big correction in the stock market on expected economic slowdown. For
    now, the pullbacks look as something healthy and opportunities to buy the dips.

Nasdaq
        Technical Analysis - Daily Timeframe

On the daily chart, we can
    see that the Nasdaq continues to slowly rise towards the all-time high. The
    buyers continue to lean on the major trendline to position for new highs. The sellers,
    on the other hand, will need to see the price falling below the trendline to
    start targeting a correction into the 20K level.

Nasdaq Technical
        Analysis - 4 hour Timeframe

On the 4 hour chart, we can
    see more clearly the rejections from the trendline as the dip-buyers continue
    to pile in at every pullback. We have a minor resistance
    around the 21050 level. The buyers will want to see the price breaking higher
    to increase the bullish bets into a new all-time high. The sellers, on the
    other hand, will likely step in around the resistance to position for a break
    below the major trendline.

Nasdaq Technical
        Analysis - 1 hour Timeframe

On the 1 hour chart, we can
    see that we have a minor downward trendline acting as resistance. A break above
    it should see the buyers increasing the bullish momentum into the 21050
    resistance. The sellers, on the other hand, will likely lean on it to position for
    a drop into new lows. The red lines define the average daily range for today.

                This article was written by Giuseppe Dellamotta at www.forexlive.com.

Source: Nasdaq Technical Analysis - The bullish bias remains intact

forexlive.com