Nasdaq Technical Analysis – Rangebound price action amid high uncertainty

Fundamental Overview

The Nasdaq sold off yesterday following the higher than expected US CPI report. Stocks didn’t extend to new lows though as the market was aware of the “January-effect” and therefore didn’t put much weight on this particular release.

What weigh more on the market were the positive headlines on the reciprocal tariffs as the White House adviser Hassett said that the reciprocal tariffs were a work in progress and conversations with other countries began earlier that day, potentially implying negotiations.

Moreover, we got a very positive post from Trump saying that he had a call with Putin and the tone of it was upbeat on a peace deal in the Russia-Ukraine war. He was even invited to Moscow. That helped the risk sentiment and weighed on crude oil (less inflationary pressures).

Both of those news gave the market a boost and helped erasing the CPI losses. Today, the focus will be on the US PPI data and the potential announcement of reciprocal tariffs.

Nasdaq Technical Analysis – Daily Timeframe

On the daily chart, we can see that the Nasdaq has been stuck in a big range for three months now. The market participants will continue to play the range until we get a breakout on either side as that will likely increase the momentum and give us the next impulse.

Nasdaq Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more clearly the rangebound price action between the 21000 support and the 22111 resistance. The sellers will likely step in again around the resistance to position for a drop back into the support, while the buyers will look for a break higher to extend the rally into the 22427 level next.

Nasdaq Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have a tighter range between the 21448 support and the 21950 resistance. The sellers will likely continue to step in around the resistance to target the support, while the buyers will look for a break higher to position for new highs. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the US PPI, the latest US Jobless Claims figures and the Trump’s reciprocal tariffs announcement. Tomorrow, we conclude the week with the US Retail Sales data.