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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 11199.75, Weakens Under 11094.75

James Hyerczyk
·3 mins read

December E-mini NASDAQ-100 Index futures are poised to close higher for the session on Tuesday after buyers confirmed yesterday’s closing price reversal bottom. The chart pattern doesn’t indicate a change in trend, but it could be signaling the start of a 2 to 3 day correction. The buying may actually be stronger than anticipated since the index has already reached its first upside objective.

At 20:54 GMT, December E-mini NASDAQ-100 Index futures are trading 11152.25, up 163.25 or +1.49%.

Tuesday’s rally is being led by tech-heavyweights such as Amazon.com, Apple, Microsoft Corp, Alphabet and Facebook Inc. Amazon led the way with a 2.2% jump after Bernstein upgraded its stock to “outperform”, saying the company will continue to receive a boost from premium subscribers and third-party merchants even beyond the pandemic.

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

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum may be getting ready to shift to the upside following Monday’s closing price reversal bottom and Tuesday’s subsequent confirmation of the chart pattern.

A trade through 10656.50 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through the last main top at 11539.00.

The main range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is support. This zone stopped the selling at 10656.50 on Monday.

The minor range is 11539.00 to 10656.50. Its retracement zone at 11094.75 to 11199.75 is currently being tested. Trader reaction to this zone could determine the direction of the index the rest of the week.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is the primary upside target and potential resistance area.

Short-Term Outlook

We’re going to be watching trader reaction to 11094.75 to 11199.75 the rest of the week for direction.

An upside bias could develop on a sustained move over 11199.75, and the downside bias could continue on a sustained move under 11094.75.

Taking out 11199.75 with enough buying volume could lead to a test of the resistance cluster at 11539.00 to 11550.75.

A move under 11094.75 could lead to another test of the major support zone at 10917.50 to 10557.25. The trigger point for an acceleration to the downside is the Fibonacci level at 10557.25.

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

This article was originally posted on FX Empire