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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Underpinned by Fed Stimulus Hopes

James Hyerczyk

September E-mini NASDAQ-100 Index futures are inching higher during the pre-market session on Tuesday as investors clung to hopes of a stimulus-backed economic rebound. The index was boosted by a rise in Apple Inc and a strong recovery in shares of Facebook.

The rise in the number of new COVID-19 cases at hot spots throughout the country has been largely ignored by investors with most expecting the U.S. Federal Reserve to step in with additional monetary easing if economic conditions get really bad.

At 06:08 GMT, September E-mini NASDAQ-100 Index futures are trading 9978.50, up 4.75 or +0.05%.

In other news, data on Monday showed contracts to buy previously owned homes rebounded by the most on record in May, suggesting the housing market was turning around. Later this week, investors will focus on employment and consumer confidence data for June.

Daily September E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 10296.25 will signal a resumption of the uptrend. A move through 9368.25 will change the main trend to down.

The minor trend is down. This is controlling the momentum. The minor trend changes to up on a move through 10120.50. A trade through 9728.75 will indicate the selling pressure is getting stronger.

The first minor range is 10296.25 to 9728.75. Its 50% level at 10012.50 is potential resistance.

The second minor range is 9368.25 to 10296.25. Its 50% level at 9832.25 is potential support.

The short-term range is 8841.00 to 10296.25. Its retracement zone at 9568.50 to 9397.00 is a key support zone.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the 50% level at 10012.50.

Bullish Scenario

A sustained move over 10012.50 will indicate the presence of buyers. This could trigger a quick move into the minor top at 10120.50. Taking out this level could trigger an acceleration into the contract high at 10296.25.

Bearish Scenario

A sustained move under 10012.50 will signal the presence of sellers. If this created enough downside momentum then look for the selling to extend into 9832.25. If this level fails then look for further selling pressure into 9728.75, Monday’s low.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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