Nasdaq Technical Analysis: Soft US data might finally take us back to all-time highs

Soft CPI Supports Nasdaq

The US CPI has come in much softer than expected, providing the Fed with potential justification for an earlier rate cut. The market's reaction has been cautious, although the Nasdaq initially strengthened before giving back some gains, indicating some fading bullish momentum.

Technical Analysis

The Nasdaq has struggled to break above the 25,832 resistance level, retreating to the 25,000 price area. Consolidation has been noted this week, but the soft US data may give buyers the support needed to push the price back toward 25,832. A breakout at this level could see sellers enter, positioning for a potential drop.

4-Hour Trends

On the 4-hour chart, a downward trendline suggests a recent pullback. The price is currently breaking above the trendline, potentially attracting buyers to target the 25,832 level with defined risk below.

1-Hour Insights

From the 1-hour perspective, the price has rejected the trendline breakout, with buyers looking to target the 25,508 level, where a breakthrough may open doors for a move to 25,832 next. Conversely, sellers will watch for any moves back below the trendline, aiming for drops into recent lows around 25,200.