Technical Analysis

NASDAQ Price Analysis – March 17, 2023

By LonghornFX Technical Analysis
Mar 17, 20233 min

Daily Price Outlook

The Nasdaq 100 Index is currently trading at 12,581.39, which is an increase of 2.69% in the last 24 hours. Stocks are rising as investors anticipate that the authorities will provide sufficient support to the banking system.

First Republic's Support Benefits Banks and Boosts NASDAQ

The market's sentiment has improved following Swiss authorities providing a lifeline to Credit Suisse, and leading American financial firms joining forces to save First Republic Bank, a regional depository institution that was at risk of failing due to the bankruptcy of Silicon Valley Bank and Signature Bank.

Investors were pleased to hear that JPMorgan, Citigroup, Bank of America, Wells Fargo, Morgan Stanley, and PNC reportedly deposited $30 billion with First Republic Bank as part of a US government-led initiative to support troubled financial firms amid growing systemic concerns.

Moreover, the US regional banks' dramatic situation changed rapidly after the European Central Bank raised interest rates by 50 basis points. As several of the country's leading lenders rallied to help First Republic Bank, the NASDAQ experienced a significant rebound.

The Fed's Interest Rate Decision Shrouded in Uncertainty

Reports have indicated that the number of people filing new claims for unemployment benefits in the US has declined more than expected, indicating a strong job market that may encourage the Fed to continue hiking rates.

However, on Wednesday, data showing a decline in producer inflation and weak retail sales numbers supported expectations of a modest rate increase by the Federal Reserve at its meeting.

The Fed will announce a new policy on March 22, and money markets are overwhelmingly pricing in a 25-basis-point rate rise.

Uncertainty surrounding the Fed's interest rate decision has caused the Dollar Index to hit a two-day low at 104.08, while the US 10-year Bond Yield dropped to 3.564%. The weak dollar has capped the rise of the NASDAQ.

Movers and Shakers of the NASDAQ 100 Market

Today, AMD, Marvell Technology, and Intel emerged as the top gainers on the NASDAQ as demand for semiconductor stocks remained strong. Traders are expecting that the increasing demand for AI will boost earnings for semiconductor makers. If the risk appetite remains high and the NASDAQ continues to rise, this trend is likely to continue.

 NASDAQ Price Chart - Source: Tradingview

NASDAQ Intraday Technical Levels

Support      Resistance

12096          12338

11940          12425

11853          12581

Pivot Point: 12182

NASDAQ – Technical Outlook

The NASDAQ is currently experiencing a bullish trend as it has broken through the resistance area of $12,350 and is now heading toward the next resistance level of $12,750.

If the index manages to break above the immediate resistance level of $12,750, it could expose it to the next resistance area of $13,125.

Both the MACD and RSI indicators are in the buying zone, indicating a strong upward bias in the market. However, if the NASDAQ falls below the $12,400 level, it could potentially reach the $12,100 or $11,850 mark.



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