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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Freefall to 11675.50 if 11955.75 Fails

James Hyerczyk
·2 min read

December E-mini NASDAQ-100 Index futures are trading slightly higher late in the session on Tuesday, but struggling to hold on to those gains. The tech-based index is being supported by a sharp rise in shares of Tesla Inc, which jumped 12% in anticipation of a $51 billion trade by index funds adjusting their holdings when the electric-car maker will be added to the benchmark S&P 500 in December.

At 19:24 GMT, December E-mini NASDAQ-100 Index futures are trading 12025.00, up 20.00 or +0.17%.

In other news, Amazon.com Inc rose 1.2% after it launched an online pharmacy for delivering prescription medications in the United States.

Meanwhile, the latest data showed U.S. retail sales increased less than expected in October and could slow further due to spiraling new infections and a lack of fiscal support.

Daily December E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on November 9.

A trade through 12408.75 will reaffirm the uptrend. The main trend changes to down on a move through 10942.25.

The minor trend is also up. A trade through 11503.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 12408.75 to 11503.25. Its 50% level at 11955.75 is holding as support on Tuesday. This is also the trigger point for an acceleration to the downside.

The short-term range is 10942.25 to 12408.75. Its retracement zone at 11675.50 to 11502.50 is controlling the near-term direction of the index. This zone stopped the selling on November 10 at 11503.25.

Short-Term Outlook

The direction of the December E-mini NASDAQ-100 Index the rest of the week is likely to be determined by trader reaction to the pivot at 11955.75.

A sustained move over 11955.75 will indicate that buyers are coming in to defend the first minor pivot at 11955.75. If this generates enough upside momentum then we could see the market continue to claw its way back to the top at 12408.75.

A sustained move under 11955.75 will signal the return of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the short-term 50% level at 11675.50. If this level fails then look for a possible spike into the support cluster at 11503.25 to 11502.50.

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

This article was originally posted on FX Empire