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May 08, 2023
A quick look at Friday: after finishing Thursday at 11,966, the Nasdaq went up to 12,265 before paring its losses and closing at 12,235.
Nasdaq made an initial breakout above its 5 day Simple Moving Average at 12,100, a potential indicator of a newly emerging bullish phase. Price action overcame a known Fibonacci resistance level at 12,200 by around 45.96 points with prices hammering out a 12,066 – 12,265 session range. In contrast, the Nasdaq is 76.18 points away from testing key resistance at 12,300. Peaking above this level could inspire market bulls and open the path to further gains. Bollinger Band® analysis indicates that current price action is approaching the upper band at 12,300, thereby suggesting that the Nasdaq is becoming overvalued.
Overall, looking at the technical analysis landscape, it seems the Nasdaq likely to continue pointing upward in the short term.
The Nasdaq shows positive signs, other assets are also on par: notably, Dow Jones rose 1.65% Friday and closed at 33,128. S&P 500 is trading around 4,136.25 after ending Friday's session at 4,061.22 (up 1.85% today). FTSE is trading around 7,778.38 after ending Friday's session at 7,702.64 (up 0.98% today).
Furthermore, the market is looking at United States EIA Short-Term Energy Outlook is scheduled for tomorrow at 16:00 UTC.
The index has been trending positively for about a month. This year has been a bright one for the Nasdaq after trading as low as 10,200 and going on to appreciate by 18.27% year to date.
