Nasdaq soars as cooling inflation spurs bets of smaller rate hikes
The tech-heavy Nasdaq surged 5 per cent on Thursday as data showed US consumer prices increased less than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes.
The Labour Department said consumer prices advanced 7.7 per cent in the 12 months through October, while the core rate, which excludes volatile food and energy prices, increased 6.3 per cent on a year-on-year basis last month.
Economists polled by Reuters had expected the CPI and core number to rise 8 per cent and 6.5 per cent, respectively. “It is a good sign for the Fed … it’s all moving in the direction that the Fed wants it to,” said Robert Pavlik, senior portfolio manager.
NASDAQ TECHNICAL ANALYSIS:
In the daily chart Nasdaq has taken support from its lower band and is currently moving upside.
It is currently trading above all MA.
RSI is in the overbought zone which indicates bearishness.
Its immediate resistance is at 11730.45 and its support level is at 11198.1
HOW TO TRADE NASDAQ INDEX IN THIS WEEK
NASDAQ has taken strong support from its lower band and made a strong bullish candle market tends to move upside so remain bullish on it.