Technical Analysis

NASDAQ Price Analysis – February 28, 2023

By LonghornFX Technical Analysis
Feb 28, 20233 min

Daily Price Outlook

The Nasdaq 100 (NDX) is currently trading at $12,057.79, representing a 0.74% increase in the past 24 hours. The rebound in the Nasdaq comes after durable goods orders dropped, which may have alleviated concerns of an overheating economy and a potential interest rate hike.

Durable Goods Orders Fall More Than Expected, US Dollar Falls from Multi-Week Highs

On February 27, a report revealed that new orders for manufactured durable goods in the US decreased by 4.5%, the biggest decline since April 2020, exceeding economists' expectations of a 4.0% drop. However, the National Association of Realtors index of pending home sales increased by 8.1% to 82.5 in January, surpassing the predicted 1.0% rise.

This indicated that the US housing market had stabilized due to falling mortgage interest rates. The US dollar fell from its multi-week highs following the unfavorable durable goods report. The US Dollar Index (DXY) found support at 104.65 after a significant loss, and the yield on the benchmark 10-year US Treasury note slightly decreased to 3.92%.

The NASDAQ rebounded as positive market sentiment and a sharp decline in headline durable goods orders alleviated some of the hawkish pressure on the Fed.

Tesla (TSLA) Rallies Ahead of Investor Day and Musk's Master Plan 3 Disclosures

Tesla (TSLA) is set to hold its Investor Day on March 1, during which CEO Elon Musk is expected to reveal insights about "Master Plan 3." In anticipation of the event, several traders have reportedly been buying up shares, leading to a 5.5% increase in Tesla's stock price. This rally has contributed to a more than 70% rise in Tesla's shares so far this year.

Additionally, the increase in Tesla's stock price has boosted Elon Musk's net worth, causing him to reclaim the title of the world's richest man after a brief period behind Bernard Arnault of France.

The positive momentum of TSLA's stock is also benefiting the broader stock market, as NASDAQ rises amid Tesla's surge.

 NASDAQ Price Chart - Source: Tradingview

NASDAQ Intraday Technical Levels

Support      Resistance

11908         12025

11846         12080

11790         12142

Pivot: 11963

NASDAQ – Technical Outlook

From a technical perspective, the NASDAQ has completed a 38.2% Fibonacci retracement and is now finding support at the $11,940 level. A close below this level could expose the NASDAQ price to the next support level at around $11,440.

Furthermore, on the 4-hour timeframe, the tech index Nasdaq has broken through an upward channel, which is also contributing to bearish sentiment in the market. On the upside, the NASDAQ may encounter an immediate resistance level at $12,250.


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