Nasdaq, Hang Seng, and Nikkei: Key Market News and Technical Analysis
Despite a recent correction from the resistance area, the Nasdaq may continue to brush off the Fed’s hawkish stance. With over a 90% chance of a stable policy rate at the next Fed meeting, rate hike fears are easing. However, the Nasdaq could still face pressure from weaker manufacturing activity and external risks, such as a government shutdown and declining European equities.
On the other hand, the Bank of Japan’s decision to keep interest rates unchanged will likely support the Nikkei Index in the short term. The weaker yen boosts export-oriented companies, which dominate the index. However, global stock market pressure from the US Federal Reserve’s cautious easing path could limit gains.
Nasdaq Index Analysis – Ascending Channel
The NASDAQ index has been trading within an ascending channel for the past two years, forming a bullish price action. This ascending channel began when the 50-day SMA crossed above the 200-day SMA in March 2023. These SMAs consistently support the price after this crossover. The emergence of a double bottom in August and September propelled the index toward the resistance of the ascending channel at 22,000. However, after the Federal Reserve’s interest rate cuts, the index corrected this resistance.
The immediate support level is around the 50-day SMA at 20,800, with the next significant support at the neckline of the double bottom at 20,000. The next support after this lies in the ascending channel’s support at 18,400. These levels will be critical in determining the index’s ability to sustain its bullish trajectory.
