Nasdaq composite: Charging toward a battle line

Reuters

Nasdaq composite: Charging toward a battle line

2024 11월 7, 오후 1:58 GMT

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Main U.S. equity index futures green: Nasdaq 100 up ~0.5%

Initial jobless claims 221k inline with est

Euro STOXX 600 index up ~0.7%

Dollar, crude down; bitcoin off >1%; gold up ~1%

U.S. 10-Year Treasury yield dips to ~4.40%

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NASDAQ COMPOSITE: CHARGING TOWARD A BATTLE LINE

The Nasdaq composite .IXIC vaulted nearly 3% on Wednesday for its biggest daily gain since February. With this, the tech-laden index hit a record intraday high of 19,000.50 before ending at a record closing high of 18,893.47.

Traders are monitoring price action closely as the composite is now challenging a chart hurdle that capped strength in July, as well as in late October:

The composite faces a log-scale resistance line from its Y2K high, which on a monthly basis, resides around 19,100 this November.

Log-scaling is plotted so that equal distances on the price axis represent proportional changes in value rather than constant changes. Therefore, it can be better suited for longer-term analysis, over a wide range of values.

Of note, upon flirting with this resistance line in July, the composite sold off nearly 16% before bottoming at the support line from its January 2023 low.

In late October, as the IXIC once again challenged this resistance line, it suffered a quick, near-4% setback.

Thus, to add confidence in further gains, bulls will want to see closes above 19,100.

In that event, the composite's next hurdles would include the 20k psychological level and a resistance parallel, based off of the January 2023 support line, that resides around 20,850 in November.

(Terence Gabriel)

*****

FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

TRUMP CONSTRAINTS COULD DECIDE EUROPEAN EQUITIES' FATE - CLICK HERE

EUROPE RISES ON STRONGER MINING, AUTOS, BUT EARNINGS DRAG - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES RISE AHEAD OF JAMPACKED DAY - CLICK HERE

GERMAN POLITICAL DRAMA ADDS TO TRUMP RISKS FOR EUROPE - CLICK HERE

IXIC11072024 https://tmsnrt.rs/48FtxXK

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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