NASDAQ Price Analysis – March 23, 2023
Daily Price Outlook
The NASDAQ 100 Index (NDX) experienced a 1.37% decline, trading at 12,567.15, following the Federal Reserve's 25 bps interest rate increase on Wednesday, with policymakers indicating that there would be only one more rate hike this year.
Fed Chairman Jerome Powell reiterated his commitment to combating inflation, stating that the FOMC is firmly committed to achieving its 2% inflation target. However, he noted that the ongoing banking crisis has put pressure on monetary policy, with tighter credit conditions expected to impact economic activity, hiring, and inflation.
The banking sector's stability is crucial to the Fed's rate forecast, and Powell stated that bank savings are protected by the Fed, FDIC, and Treasury. However, he noted that it is still too early to determine how monetary policy should respond to the current banking crisis.
Powell's comments had a significant impact on bank stocks, including First Republic Bancorp (FRC) and PacWest Bancorp (PACW), which experienced substantial losses on Wednesday, leading to a sell-off that impacted the NASDAQ Index.
Corporate Earnings and Active Stocks
KB Home (KBH) reported a net income of $125.5 million for the fiscal first quarter on Wednesday, resulting in a 2.7% increase in share value. The company also announced a $500 million repurchase program.
Steelcase's shares rose more than 6% following the announcement of better-than-expected sales and adjusted profits per share for the most recent quarter, along with a positive forecast for the current quarter.
In contrast, shares of Coinbase (COIN), a cryptocurrency services provider, fell almost 10% after receiving a Wells notice from the Securities and Exchange Commission regarding potential breaches of US securities law.
NASDAQ Price Chart - Source: Tradingview
NASDAQ Intraday Technical Levels
Support Resistance
12630 12808
12517 12874
12450 12986
Pivot Point: 12695
NASDAQ – Technical Outlook
The NASDAQ is currently showing a slight tendency towards bullishness, but it is facing resistance at the $12,700 level. On the other hand, the support level seems to be holding firm at around $12,450. The next major support level for the NASDAQ is at $11,850, and if it breaks below this level, it may expose the index to the next support area at $11,600.
Both the MACD and RSI indicators suggest a bearish sentiment in the market, as they are in the selling zone. Nevertheless, if the NASDAQ manages to surpass the $12,700 level, it may potentially aim for the $13,000 or $13,200 levels on the upside.
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