Nasdaq building on support 8/12/2023

The Nasdaq index displayed a notable upward trend in the preceding trading session, securing its position above 15,940 and reaching a pinnacle at 16,045.

From a technical standpoint, our trading stance is optimistic yet cautious, contingent on intraday stability above the critical support level of 15,940. This positive outlook aligns with the index receiving a favorable boost from the 50-day simple moving average.

Consequently, the preference leans towards an upward bias throughout the day. Notably, the consolidation of the price above 16,045 would smooth the path for a visit to 16,110 as the initial target. Subsequent gains may extend towards 16,215.

However, a breach below 15,940 could prompt the index to retest to 15,840 initially.

Several warnings merit attention: Firstly, the risks are elevated, highlighting the need for a cautious approach in trading decisions. Secondly, today’s anticipation of high-impact economic data from the American economy—specifically NFP data, average wages, and unemployment rates—may result in heightened price fluctuations during the news release. Lastly, the overall risk level remains high amid ongoing geopolitical tensions, contributing to the potential for increased price volatility. It is imperative to exercise caution and remain vigilant in response to market dynamics.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 15840	R1: 16110
S2: 15660	R2: 16215
S3: 15560	R3: 16380