At yesterday’s close, the Nasdaq Composite strengthened by 1.1%, and today stock market indices continued growing. The Japanese Nikkei Stock Average closed 0.8% higher, while Chinese indices also grew. At the same time, gold, silver, oil and the US Dollar are growing togetherwithstockmarkets.
The markets do not seem to be expecting the rate increase in the US tomorrow, as the Fed interest rates futures indicate a 25% possibility of the rate increase in September.
Thus, the NASDAQ index remains under pressure amid the uncertainty regarding interest rate hike in the US and the Chinese economy recovery.
Today pay attention to the data on the Consumer Price Index for August from the US, which can lower the expectations of the September rate increase should it come out worse than forecasts.
Support and resistance
The price reached a strong resistance level at 4370.0 (EMA200 on the 4-hour and daily charts).
The growth can continue up to the levels of 4395.0, 4400.0 (ЕМА144 on the daily chart), and OsMA and Stochastic on the daily chart confirm that.
However, as markets are waiting for the Fed decision, the price is squeezed in a triangle and the breakout could happen in any direction.
Support levels: 4300.0, 4337.0.
Resistance levels: 4370.0, 4400.0.
Place pending buy orders at the level of 4390.0 with the target at 4450.0 and stop-loss at 4360.0.
Pending sell orders can be placed at the level of 4335.0 with the target at 4200.0 and stop-loss at 4350.0.