Technical Analysis

NASDAQ Price Analysis – March 03, 2023

By LonghornFX Technical Analysis
Mar 3, 20233 min

Daily Price Outlook

The Nasdaq 100 (NDX) trades at $12,044.87, showing a 0.89% increase within the last 24 hours. US stocks recovered from their initial decline as Raphael Bostic, the president of the Atlanta Fed, expressed his support for the stock market gains.

Bostic's Hawkish Stance Sparks Recovery Rally in US Stocks

At the start of the day, the NASDAQ faced some pressure. Nevertheless, the market recovered, and stocks soared as traders tried to counter worries about increasing interest rates. Raphael Bostic, the president of the Atlanta Federal Reserve, stated on Thursday that he strongly supports additional 25 basis point rate hikes, which resulted in the market reversal.

He also mentioned that the central bank could halt the current tightening cycle by the middle of summer. This was enough to cause market participants to overlook the rising bond yields.

The yield on the US 10-Year Treasury rose to 1.58%. At the same time, the US Dollar Index (DXY) is trading around 91.85. Following Bostic's remarks, the market is now pricing a greater chance of a lower Fed Funds rate for June 2023.

Corporate Earnings Drive NASDAQ Rebound Amid Interest Rate Concerns

Corporate earnings for the day saw a surge in Salesforce and Okta stock prices due to solid results, while Silvergate Capital and Tesla shares took a hit. Salesforce's shares rose after exceeding Wall Street earnings forecasts and publishing a better-than-expected projection on Wednesday. Similarly, Okta's shares also increased after the company reported better-than-expected results for the latest quarter and a positive outlook for the upcoming one. However, the shares of Silvergate Capital and Tesla fell.

Meanwhile, Silvergate Capital's stock plummeted over 57% when the company missed the deadline for filing its 10-K annual report. As for Tesla, shares also fell by 5.8% after the company didn't provide any details about the highly anticipated next-generation vehicles on investor day. Tesla is a popular choice among retail investors.

 NASDAQ Price Chart - Source: Tradingview

NASDAQ Intraday Technical Levels

Support      Resistance

11879          12026

11819          12114

11732          12173

Pivot Points:11966

NASDAQ – Technical Outlook

Technically, the NASDAQ is currently confined within a downward channel, with a narrow trading range of $11,800 to $12,050. Support for the NASDAQ is being observed at the $11,940 level, and a close below this level could lead to a potential drop to the next support level at around $11,440.

Moreover, in the 4-hour timeframe, the Nasdaq has broken through an upward channel, further intensifying the bearish sentiment in the market. On the upside, the NASDAQ may face immediate resistance at the $12,250 level.



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