Nasdaq has broken above the crucial resistance, suggesting an upward shift in sentiment. But, next week will be a test as Big Tech are due to report earnings.

Technicals

From a technical outlook, the Nasdaq is currently trading at around 11,977. Taking a look at the chart on the daily timeframe, we can see that the index has broken above crucial resistance, suggesting an upward shift in sentiment. Therefore, the next resistance levels sit at 12,056 then at 12,084 then at 12,117. A break above these levels could see the index climb towards the key resistance located at 12,258. However, next week will be a huge market test for the Nasdaq as the Big Tech companies are expected to report their quarterly earnings. The likes of Meta, Apple, Alphabet and Amazon are all due to report, and negative reports may wipe out the recent market gains and optimism. Therefore, at present, minor support levels sit at 11,923 then at 11,820 then at 11,760. A break below 11,760  could see the index fall towards 11,500-11,600. Looking at the technical indicators, MACD is strongly positive and so is RSI as it reads 67. RSI is floating just below ‘overbought’ territory.