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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Changes to Up on Trade Through 7799.75

James Hyerczyk

December E-mini NASDAQ-100 Index futures are trading at their high of the session on Thursday after President Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front. Apple shares are one of the best performers, climbing more than 1%.

At 15:33 GMT, December E-mini NASDAQ-100 Index futures are trading 7781.50, up 82.00 or 1.07%.

In a tweet, Trump said:  “Big day of negotiations with China. They want to make a deal, but do I? I will meet with the Vice Premier tomorrow at The White House.”

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 7474.75 on October 3.

A trade through 7799.75 will change the main trend to up.

The major support is the 7624.50 to 7535.00 retracement zone. Today’s low at 7583.25 fell inside this zone.

The short-term range is 7973.75 to 7474.75. Its retracement zone at 7724.00 to 7783.00 is currently being tested. It is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action and the current price at 7781.50, the direction of the December E-mini NASDAQ-100 Index futures contract the rest of the session on Thursday is likely to be determined by trader reaction to the Fibonacci level at 7783.00.

Bullish Scenario

A sustained move over 7783.00 will indicate the presence of buyers. The first target is a steep uptrending Gann angle at 7794.25.

Crossing to the strong side of the uptrending Gann angle at 7794.25 will put the index in a bullish position. Taking out the main top at 7799.75 will change the main trend to up and could trigger a surge into the downtrending Gann angle at 7853.75. This is another potential trigger point for an acceleration into downtrending Gann angles at 7913.75 and 7943.75. The latter is the last potential resistance angle before the 7973.75 main top.

Bearish Scenario

The inability to overcome 7783.00 will signal the return of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 7724.00. This 50% level is a potential trigger point for an acceleration into the uptrending Gann angle at 7634.25.

This article was originally posted on FX Empire

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