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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 7870.00, Strengthens Over 7883.25

James Hyerczyk

December E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. Investors have a lot on the table at this time and appear to be willing to sit on their hands ahead of the Fed’s interest rate and monetary policy decisions on Wednesday. Not only are investors worried about the direction of future rate cuts, but there are also concerns over the tensions in the Middle East and the uncertainty over U.S.-China trade relations.

At 13:01 GMT, December E-mini NASDAQ-100 index futures are trading 7863.75, down 15.75 or -0.21%.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8002.50 will signal a resumption of the uptrend. A trade through 7764.00 will change the main trend to down.

The minor trend is also up. A trade through 7798.25 will change the minor trend to down. This will shift momentum to the downside.

The short-term range is 7764.00 to 8002.50. Its 50% level or pivot at 7883.25 is controlling the direction of the index today.

The main range is 7390.00 to 8002.50. If the main trend changes to down then look for a break into its retracement zone at 7696.25 to 7624.00.

Daily Technical Forecast

Based on the early price action and the current price at 7863.75, the direction of the December E-mini NASDAQ-100 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the uptrending Gann angle at 7870.00.

Bearish Scenario

A sustained move under 7870.00 will indicate the presence of sellers. This could trigger a break into the minor bottom at 7798.25. Taking out this level could lead to a test of the main bottom at 7764.00. This is a potential trigger point for an acceleration into the main 50% level at 7696.25.

Bullish Scenario

A sustained move over 7870.00 will signal the presence of buyers. This could trigger a labored rally with potential targets coming in at 7883.25, 7906.25 and 7919.75. The index could spike to the upside over 7919.75 with 7954.50 the next target.

This article was originally posted on FX Empire