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Nasdaq Composite Technical Analysis - The bulls are eyeing the trendline

The market maintains its upward trajectory, largely attributed to the containment of the conflict in Israel, which has not escalated to involve other Arab nations. Notably, recent reports from US intelligence suggest that Iran was caught off guard by the Hamas attack. This development has exerted downward pressure on Crude Oil prices and mitigated the potential for a more significant price spike.

Additionally, while the US Producer Price Index (PPI) report exceeded expectations, its driving force was predominantly energy-related. The market response was somewhat muted, likely due to the substantial decline in oil prices during October. Furthermore, comments from Fed's Waller indicated that a rate hike in November is unlikely unless an exceptionally adverse Consumer Price Index (CPI) report materializes.

This revised statement provides a more detailed and refined description of the market situation, addressing the geopolitical factors influencing Crude Oil prices and the nuanced analysis of the PPI report and its implications for future monetary policy decisions.


On the daily chart, a notable price development occurred following the breakout from the consolidation phase cantered around the critical support level of 13,174. The Nasdaq Composite charted an impressive path to new highs, maintaining its bullish momentum and exhibiting limited pullbacks as it approached the upper trendline near the 13,800 level.

It's within this price range that we anticipate sellers to enter the market with increased conviction, presenting a more favorable risk-to-reward scenario. Their objective is to establish positions aimed at triggering a price decline toward lower levels and potentially securing a breach below the key support at 13,174.

This revised statement provides a clearer and more precise depiction of the Nasdaq Composite's price movement, emphasizing the significance of the support level and the potential dynamics around the upper trendline.


On the 4-hour chart, there is noticeable price congestion occurring around the resistance level near 13,650. A decisive breach above this resistance is expected to trigger increased buying interest, potentially driving the price higher and leading to a continuation of the rally towards the upper trendline.

Conversely, sellers are likely to maintain their positions near this level while carefully managing their risk. This approach positions them for a potential price decline towards lower levels, seeking to capitalize on opportunities if the market dynamics take a bearish turn.

This revised description offers a more precise account of the price behaviour at the resistance level and the corresponding strategies for both buyers and sellers.


Chris

Head coach & Trader

www.thetradingmentors.com

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