September E-mini NASDAQ-100 Index futures are in a position to finish higher for the session on Friday despite a steep decline in Netflix and small losses in other tech giants including Amazon, Apple and Microsoft. Nonetheless, the move wasn’t strong enough to turn the technology-based index higher for the week.
At 20:33 GMT, September E-mini NASDAQ-100 Index futures are trading 10627.50, up 116.00 or +1.10%. Last week it closed at 10837.25.
Index component Netflix reported second-quarter earnings that missed analyst expectations, pushing the stock down 6.5%. Shares of other major tech companies also struggled Friday. Amazon pulled back 1.2%. Microsoft dipped 0.5% and Apple slid 0.2%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum shifted to the downside following the closing price reversal top on July 13 at 11058.50 and its subsequent confirmation.
A trade through 11058.50 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down when sellers take out the 9728.75 main bottom.
The minor trend is down. It changed to down when sellers took out the minor bottom at 10505.25. This move confirmed the shift in momentum.
The minor range is 11058.50 to 10358.75. Its retracement zone at 10708.75 to 10791.25 is resistance. This zone stopped the buying at 10766.50 on July 15.
The short-term range is 9728.75 to 11058.50. Its 50% level at 10393.50 is potential support. It helped stop the selling on July 14.
The next short-term range is 9368.25 to 11058.50. Its retracement zone at 10213.25 to 10014.00 is another potential support zone.
The daily/weekly closing price reversal top combination could develop into something bearish over time. It certainly caught our attention because it is pretty rare.
We don’t know what it is right now, however. We do know that it tends to indicate the selling is greater than the buying at current price levels. But we don’t know if the selling is profit-taking or new shorting, or a combination of the two.
The chart pattern has been confirmed on the daily chart, and we’ve also seen a minor secondary lower top.
The weekly chart’s closing price reversal top will be confirmed when sellers take out 10358.75.
Ahead of next week, we’re only going to assume that momentum has shifted. We’re not looking for a change in trend yet. As long as investors keep buying on the dips into the support levels, it’s going to take some time to change the trend to down.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- US Stock Market Overview – Stocks Close Mixed for the Day and the Week
- Natural Gas Weekly Price Forecast – Natural Gas Markets Continue to Grind
- EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – July 18th, 2020
- S&P 500 Weekly Price Forecast – Stock Markets Form Major Potential Bullish Signal
- Price of Gold Fundamental Daily Forecast – Sideways to Better as Investors Await More Stimulus Measures
- USD/JPY Weekly Price Forecast – US Dollar Continues to Trade in the Same Tight Range